The Yen saw an extremely bearish session during last week's trading. The Yen dropped against the Dollar, the Euro and the Pound. This was the most remarkable drop the Yen has experienced against the Pound, as the GBP/JPY pair rose by about 600 pips and is currently traded at the 148.40 level.

The Bank of Japan (BoJ) chose to leave the Japanese Interest Rates at the 0.10% level, the lowest in the industrial world. The BoJ's policy is quite clear. Its purpose is to keep the Yen as low as possible in order to help the Japanese exporters. The objective behind it is that the BoJ believes that raising exports will be the greatest aid to the troubled Japanese economy, and thus chooses to have the lowest rates in the world as a tool to reach this target. For the time being it seems that the BoJ's plan is working, and the Yen is indeed weakening.

As for this week, a batch of data is expected from the Japanese economy. However the most impacting economic publication looks to be the Trade Balance, expected on Wednesday. The Trade Balance measures the difference in value between imported and exported goods and services during September. Due to the high dependence of the Japanese economy on its export, this report tends to have a large impact on the Yen. If the end result will reach expectations for a 0.38T rise, the Yen is likely to be supported as a result.