JPY review

Japan's consumer confidence in April dipped lower to 41.5 for its first negative reading since Dec last year. Japan's inflation at the wholesale level dipped lower to minus 2.1 percent(Y/Y) for the first negative reading since March 2013. This was in line with market expectations and was a result of the "base effect" of the April 2014 sales tax increase. 

BoJ Gov Kuroda in a speech earlier today mentioned that he did not see an immediate need for further monetary easing as broad trend of inflation is improving steadily. He acknowledged that the timing for achieving the target of 2 percent for inflation has been delayed due to the effect of fall in oil prices. 

The USD/JPY has been steady and had not participated in the recent US Dollar weakness. This currency pair has traded a rather narrow range over the last few weeks as the rally at the long end of the US Treasury curve has offset the weakness in equities.