The Yen rose to an 8-month high vs. the U.S. dollar during Friday's trading session. The Yen gained about 200 pips against the dollar last week, and the USD/JPY pair dropped as low as the 85.00 level. The Yen saw mixed results vs. the euro and the British pound.

The yen strengthened vs. the dollar following disappointing data from the U.S. economy. The Non-Farm Payrolls report, which was released on Friday, showed that the amount of employed people in the U.S. has dropped for the second month in a row in July. In addition, this has added to concerns that global economic recovery might take longer than expected and as a result boosted demand for safer assets, such as the yen.

As for this week, a batch of data is expected from the Japanese economy, yet the most interesting economic publications look to be the Overnight Call Rate. The Overnight Call Rate is the Bank of Japan's (BoJ) interest rates decision for August. Current expectations are that the BoJ will leave rates at 0.10%, the lowest in the industrial world. However, should the BoJ decide to hike rates, heavy volatility could hit yen pairs.