The Japanese yen finished yesterday's trading session with mixed results versus the major currencies. The Japanese currency extended gains versus the EUR on Friday, to trade around 112.60 amid a broad sell-off in the EUR. The yen experienced similar behavior against the CHF as the pair fell from 86.14 to 85.45 by week's end. The JPY did see some bearishness, however, as it lost 150 points against the USD and closed at 83.25.

Further strengthening could be seen in the yen if other nations begin to raise interest rates in order to ward off inflation. This could potentially wreak havoc on the Japanese economy by making Japanese exports relatively more expensive when compared to their foreign counterparts.

Looking ahead to this week, several interesting economic releases are expected from the Japanese economy, yet at least for the near future, the political developments in the Middle East might have a larger impact on yen trading. Traders should take under consideration that if the unrest in the region will grow, the yen might strengthen further.