The Japanese yen saw a rather volatile trading session on Monday. The yen saw several ups and downs against the U.S. dollar, which eventually ended near to market's opening price. The yen also saw a sharp gain of 100 pips against the euro in early trading, just to undergo a 70 pips correction afterwards.

The Japanese currency began yesterday's trading with a rising trend following a weak German manufacturing data. German Factory Orders declined in December by 3.4 percent from November, and as a result boosted demand for safer assets, such as the yen.

Looking ahead to today, traders are advised to follow the Japanese equity markets, as no significant release is expected from the Japanese economy. Traders should also follow the leading economic releases from the U.S. and euro zone, as these usually have a large impact on yen trading as well.