Throughout today's early trading hours the JPY appeared to be either floating or strengthening against its currency rivals. The forecast that the Bank of Japan (BoJ) will soon take stronger measures to curb the economic recession, coupled with the recent weakening of the JPY, has helped boost risk appetite. This increase in risk appetite has helped Japanese stocks rebound as a weakened JPY and low Crude Oil prices lifted the prospects of an increase to Japanese automotive sales.
This week will be an unusually quiet week for the JPY as there will be scarce economic news emanating from the island economy. However, there may be some unscheduled announcements this week from the BoJ about its decisions for, and implementation of, further economic stimulus packages. Forex traders should watch for any such announcements as they carry the potential to indicate future price movements and investor confidence levels.