The Japanese yen has continued to make gains against its main currency rivals, as risk aversion continues do be the predominant market sentiment. USD/JPY fell some 40 pips in overnight trading and currently stands close to the 86.50 mark. GBP/JPY fell some 80 pips in the same amount of time, with the pair currently trading around the 135.00 level.

Analysts attribute the continuous yen gains to the overall slow pace of the global economic recovery, combined with positive Japanese economic indicators. Last night's household spending report came in much better than expected, and generated solid momentum for the yen.

Today, traders will want to pay attention to not only the U.S. Advance GDP figure, but also the European unemployment number as well as Swiss KOF Economic Barometer. With most of these indicators forecasted to show little if any improvement in their respective economies, the yen should have no trouble extending its gains. That being said, should any of the news come in better than predicted, JPY may take some midday losses.