Japan nationwide CPI falls ? Abenomics not exactly heading toward 2 percent inflation target but heading toward deflation ....

http://www.zerohedge.com/news/2013-04-25/abenomics-leads-worst-core-deflation-three-years

Abenomics Leads To Worst Core Deflation In Three Years

Submitted by Tyler Durden on 04/25/2013 19:48 -0400

• CPI

Six months in and a 30% devaluation in the JPY and it would appear Abenomics is not having quite the desired effect. With an oh-so-exciting 2% inflation target that we are sure will be appearing any second now, Nationwide CPI just printed -0.9% YoY - its worst (most deflationary) levels since April 2010, missing expectations by the most in 10 months! But wasn't Abenomics supposed to be... inflationary? Well it is in one place - Utilities costs are the only sub-index higher YoY (by 2.3%) - that's a good thing, right?

The market's immediate reaction: gold is pushing higher, breaking above
$1473, as this means moar, moar, MOARbalance sheet doubling by the
BoJ...

Gold has now retraced Fib 61.8% of its record plunge...

http://www.fxmarketalerts.com/free/document.aspx?premium=1&codes=c792dc01-01ae-e211-866d-00155d7cc701

Forex - USD/JPY, EUR/JPY Flows: Japan March core CPI -0.5% y/y, deflation, eye BoJ Kuroda

 23:30 (GMT) 25 Apr 

  [Forex Flows]   [Central Banks]

Japan March Nationwide core CPI -0.5%y/y, vs -0.4%y/y. Overall CPI for March -0.9%y/y. Tokyo Area April core CPI -0.3%y/y, vs -0.4% expected. Tokyo area overall CPI -0.7%y/y. Japan March Core-core CPI Excl Food, energy prices -0.8%y/y.

On FX, Japan still lingering and mired in deflation, as seen in March CPI. Good to note the March CPI was before new BoJ Gov Haruhiko Kuroda implemented fresh easing on April 3-4. Focus turns to 1-day BoJ meet today - as the data will give room and reason for BoJ to continue its aggressive easing to hit 2% inflation target in 2 years. Little reaction in USD/JPY , now at 99.30-35, offers at 99.50-60, bids at 99.00-10. EUR/JPY at 129.12-15, bids at 129.00, with EUR weighed by EUR/GBP sales after the GBP rally on stronger UK GDP of +0.3%q/q, vs +0.1%q/q, with UK escaping Triple Dip recession. Focus on BoJ meet now. Interest to buy on dips on hopes of more BoJ easing/ pledge to defeat deflation. WL