The Yen once again finds itself strengthening from a loss of confidence in other global currencies. With the lowest Interest Rate yield in the global market, the JPY is often used to fund the purchase of other, higher yielding currencies. However, with last week's poor economic news from Europe and the United States, these positions were either cut back or unwound as investors bought back into the JPY funds they were borrowing for such investments, driving the price of the JPY higher across most of its currency counterparts.

With very little news emanating from the island economy, it will be difficult to offer an accurate forecast for the movements of the JPY's pairs and crosses. However, as the U.S. economy receives a boost from the international auto show taking place in Detroit, and as investors prepare for another Interest Rate cut in the Euro-Zone, it is likely that the JPY could see depreciation against the USD and appreciation against the European currencies later in the week. Nevertheless, these moves may only highlight a growing trend that the global currencies are weakening in general, which will inevitably lead to a stronger JPY in the near future.