Last week the Yen continued its bearish trend as it continued to slide primarily against the GBP and the EUR, and underwent a volatile session against the dollar.
The Japanese economy continued to deliver negative notifications during last week trading. The monthly Core Machinery Orders, a report which measures the total value of new private-sector purchases orders placed with manufacturers for machines, has dropped by 5.4% in May as opposed to April. In addition, the Final Gross Domestic Product (GDP), the broadest measure of economic activity and the primary gauge of the economy's health, has dropped by 3.8% in the last quarter, completing a 4 consecutive quarters of negative figures. It is quite clear that these results demonstrate the continuation of the gloomy condition of the Japanese economy. And it seems that for as long that the Japanese economy won't begin to deliver positive signs, the Yen is likely to continue its freefall.
Looking ahead to this week, the most important publication from the Japanese economy will take place on Monday night as the Bank of Japan (BoJ) will announce the Interest Rates for June. Given the fact that Japan already has the lowest Interest Rate in the industrial world, 0.10% only, it's not likely that another Interest Rate cut will take place. However, if the BoJ will anyway decide to take actions and manipulate its Rates, this will probably have am immediate impact on the Yen, and traders should be ready for such turn of events.