The Yen continued to see volatile trading against the major currencies during last week's session. The Yen rose a little against the Dollar, but mainly ups and downs against the Euro and the Pound.
The Yen's volatility came as a result of the mixed results from the leading publications of the Japanese economy last week. Both positive and negative data was released, and this has created range-trading for the Yen's leading pairs and crosses. The most significant negative data came from the Current Account report, which showed the difference in value between imported goods and services failed to reach expectations for 1.53T, and reached 1.34T. Japan's economy relies greatly on its exports, and thus the lower-than-expected figure has weakened the Yen. On the other hand, a surprising surge in the Core Machinery Orders has created optimism that the Japanese economy might be on its way to recover. As a result of the uneven results, the Yen didn't see a clear direction during last week's session.
Looking ahead to this week, the most intriguing publication from Japan is clearly the Overnight Call Rate on Friday, which is in fact the Japanese interest rate announcement for the upcoming month. Analysts forecast the Bank of Japan (BoJ) will leave rates at 0.10%. However, if the BoJ will surprise traders with a rate hike, the rate change may have the potential to boost the Yen. Traders are advised to follow the result of the announcement.