The Japanese yen rallied against all of its major currency rivals during last week's trading session. The yen gained about 150 pips vs. the U.S. dollar, and the USD/JPY is currently trading near the 81.70 level. The Japanese currency also climbed about 150 pips vs. the euro and about 250 pips against the British pound.
The yen strengthened last week as investors sought stability in light of the uprising in Libya. The violence in Libya has boosted the uncertainty in the market, and as a result turned investors to look for safe-haven assets, such as the yen and the Swiss franc. It currently seems that as long as the violence in the Middle East will continue to spread, demand for the yen as a safe asset will increase.
As for this week, traders are advised to follow the leading releases from the Japanese economy, as they are likely to have a large impact on yen trading. In addition, traders should follow the developments from the Middle-East, especially from Libya, as the unrest there has potential to further boost the Japanese currency.