The Japanese Yen lost ground against its major rivals last week. The loss was uncharacteristic, as concern throughout global markets, which generally boosts the Yen did the exact opposite. Local economic news also failed to inspire a rise in the JPY as it gave up roughly 3% against the USD, EUR and GBP. Though not a significant loss, the lack of correlation to risk aversion could force traders to hesitate with JPY investments.
The JPY was static as it returned to trading early Monday morning. Positive retail sales numbers did not have much affect as the currency stayed close to closing prices at 92.60 to the dollar and 138.25 to the pound.
This week, should provide some movement throughout the major pairs, as the market gears up for Non-Farm Payrolls, and another week of heated debate over the US Healthcare reform and its effect on all markets. Local news from Japan should provide some movement for the JPY after the release of Wednesday's Tankan Manufacturing Index. Forecasts look for growing improvement in the figure, as last months score of -24 was the highest in over two and a half years.