The Yen saw a relatively peaceful trading session during the past week. The JPY usually kept steady rates against the Dollar and the Yen, without too many ups and downs. However the Yen did mark a downtrend against the Euro, as the EUR/JPY pair rose above the 132.30 level.

The Yen's stabile session might be the result of the mixed data from the Japanese economy. On one hand, the Japanese Current Account, which measures the difference in value between imported and exported goods and services for August, rose to 1.23T. This is wonderful news for the Japanese economic leaders who see the export of Japan as the premier parameter in the economic recovery. However, the Core Machinery Orders, which is a leading indicator of economic health failed to reach expectations for a 2.2% rise, and rose merely by 0.5% in August. Following September's 9.3% drop, this still shows that the Japanese economy is yet to pull out of recession.

As for this week, numerous data is expected from the Japanese economy, yet the most intriguing publication seems to be the Over Night Call Rate. This is in fact the Japanese interest rates announcement. Analysts forecast that the Bank of Japan (BoJ) will leave rates on 0.10%, the lowest in the industrial world. However, if the BoJ will surprise and hike rates, this will have a stunning effect on the Yen. Traders are advised to take this news event under consideration for this week's trading.