The Japanese Yen has responded favorably to last week's stream of reports coming from the island economy. Climbing steadily against all of its major counterparts, the JPY appears to be on track to be a big winner in today's market. So far this morning, the Yen has climbed 50 pips against the USD to a price of 90.00; 70 pips versus the EUR to hit the 124.80 mark; and also 45 pips against the British Pound (GBP) to the new price of 143.60.

The positive economic growth being experienced in other Pacific countries like Australia and New Zealand are no doubt feeding the positive sentiment around countries like Japan. But growth in the Japanese Yen typically represents a decline in global economic sentiment and increase in risk aversion. Perhaps a combination of these two factors is what is driving the Yen so much higher against its major adversaries. Should today's data disappoint, the JPY is likely to continue gaining ground today against these other currencies.