EUR Trading Outlook (28-04-2014)

USD/JPY stayed under pressure throughout the NorAm session as equities were broadly lower on Russia and China fears. A Ukrainian ultimatum issued yesterday hung over the marketplace as investors had no way to handicap the outcome. The Japanese CPI data didn’t seem to provide the direction as many had hoped so all eyes now turn to next Wednesday’s BOJ meeting to see how they respond to the latest reading. Nikkei futures sold off 0.8% in Chicago and puts the index in a precarious spot with this week’s bearish cross of the 40 and 200 day moving averages. CNHJPY finished at a new low for the year and is a potential negative in that the last thing the Japanese need is a disinflationary wave coming from China.