The Yen saw mixed results against the major currencies during last week's trading. The Yen began last week with sharp drops vs. the Dollar, the Euro and the Pound. However as the week progressed, the Yen managed to correct most of its losses, and even mark a 9-Year high vs. the Euro.
The Yen tumbled at the beginning of the previous week due to a political turmoil, which eventually led to a new Japanese Prime Minister - Nakoto Kan. As long as there was uncertainty regarding the Japanese leadership, the Yen declined. However, once the political turmoil was over, the Yen managed to rebound and to recover most of its losses. Currently, the European debt crisis continues to strengthen the Yen. The debt crisis is creating high-uncertainty in the market, and the Yen is considered to be a safe asset. As a result, many investors open long positions on the Yen, in order to avoid large risks.
Looking ahead to this week, a batch of data is expected from the Japanese economy. Traders are advised to follow the Core Machinery Orders and the Final Gross Domestic Product (GDP) reports. If the end result will reach expectations, the Yen is likely to be supported as a result.