The Japanese yen advanced against majors as worries in markets after China's cut to growth target and drop in manufacturing and services sectors in February enhanced safety demand on the yen.

Premier Wen Jiabao's in a transcript of address to the National People's Congress said China slashed its 2012 growth target to 7.5%, the lowest goal since 2004.

On the other hand, euro area PMI composite, which represents services and manufacturing sectors, plummeted to 49.3 in the month of February from 50.4 in January, lower than estimates of 49.7, noting that a reading above 50 means expansion and below is contraction.

Currently, there are worries in markets as investors want to watch the first test to EU leaders as Greece is set to know how many investors will agree to writedown by a deadline of March 8, where the Greek government expects 75% participation of private creditors.

Greece had its credit rating slashed to the lowest level of C from Ca by Moody's Investor Service late on Friday as the debt-mired nation started debt-swap deal with private sector bondholders.

Meanwhile, the EUR/USD pair is trading around 1.3185, where the breach of SMA 100 level around 1.3280 on Friday paved the way for further decline, after it touched a high of 1.3213, while the day's low was recorded at 1. 1.3158.

The trading range for this week is expected among key support at 1.2850 and key resistance at 1.3550.

The U.S. dollar is currently trading near the day's opening level against a basket of major currencies, where the six-currency gauge, the dollar index, is hovering around 79.45.

Against the yen, the greenback fell sharply to trade around 81.20, where the day's high was seen at 81.86 while the low was touched at 81.13.

The trading range for this week is expectedamong key support at 79.50 and key resistance now at 84.50.

Later in the day, U.S. ISM non-manufacturing index is predicted to show a narrowing expansion to 56.2 in February from 56.8 a month earlier.

Moving to the British pound, it fell for the second consecutive session versus the greenback after data showing the services sector recorded a narrowing expansion of 53.8 in February from 56.0 in January.

Meanwhile, the GBP/USD is trading around 1.5810 after touching a high of 1.5844 and a low of 1.5784.

The trading range for this week is expectedamong key support at 1.5300 and key resistance at 1.6165.