Monday, 1 Mar 2010 The Yen rose against all the major currencies during last week's trading session. The Yen gained about 300 pips against the Dollar, about 400 pips against the Euro and over 700 pips against the Pound!
A series of positive data from the Japanese economy have led to the Yen's bullish trend. The Japanese Trade Balance showed that difference between imported and exported in Japan rose to 0.73T. This has an immense impact on the Yen, especially because the Japanese economy relies greatly on its exports. Investors have saw this publication as a strong indication that the Japanese economy is recovering, and thus boosted the Yen. In addition, the Japanese Retails Sales rose by 2.6% during January, beating expectations for a 0.1% drop. This is another indication that the Japanese economy has pulled out of recession, and creating speculations that an interest rates hike might be impending. Currently it seems that for as long as the Japanese economy continues to deliver positive data, the Yen is likely to strengthen further.
As for this week, traders are advised to follow the significant news publications from the Japanese economy such as the Household Spending, the Unemployment Rate, the Average Cash Earning and the Capital Spending, as they are likely to determine the Yen's direction for this week.