The Yen rallied against all the major currencies during last week's trading session. The Yen gained about 100 pips against the Dollar, about 400 pips against the Euro and about 250 pips against the Pound.

It appears that concerns that an aid package to Greece will falter have turned investors to look for safe-haven assets, such as the Yen. By the beginning of last week, it seemed that the European leaders have finalized a rescue plan to the Greek economy, however a lack of progression on the aid package have created concerns that the Greek economy might continue to trample. As a result, the Yen has corrected its losses, and continued to rally against all the major currencies. In addition several positive data from the Japanese economy has also supported the Yen. The M2 Money Stock report showed the change in the total quantity of domestic currency in circulation and deposited in banks has rose by 2.6%, which created speculations that the Bank of Japan might hike rates soon.

As for this week, many significant economic data is expected from Japan. Traders are advised to provide special attention to the Trade Balance publication on Wednesday. This report measures the difference in value between imported and exported goods during March. Analysts have forecasted that the Japanese Trade Balance has widened by 0.66T. If the actual result will be similar, it has potential to further boost the Yen.