The Japanese yen fell against most of the major currencies during last week's trading session. The yen fell about 400 pips vs. the euro, and the EUR/JPY pair has reached as high as the 110.97 level. The yen also saw a 250 pip gain against the British pound, and the GBP/JPY cross is trading near the 131.50 level.
The yen fell against most of its major currency counterparts last week because of higher risk-appetite in the market. The higher than expected demand for the European debt sales has boosted optimism regarding the euro-zone's stability. This has strengthened currencies that are considered to be relatively risky such as the euro and the pound, and has also supported commodities such as crude oil. At the same time, this has also reduced demand for the yen as a safe haven.
Looking ahead to the this week, the most significant news releases from the Japanese economy look to be the Tertiary Industry Activity on Tuesday and the All Industries Activity on Friday. Positive data will show that the Japanese industry is expanding, and is likely to support the JPY.