The Yen saw an extremely bullish session during last week's trading. The Yen rose close to 200 pips again the Dollar, and gained over 300 against the Euro. The Yen strengthened against the Pound as well.
Two main reasons have lead to the Yen's recovery this week. The first one was the relatively positive data that was released from the Japanese economy. The most significant data was the Current Account, which showed that during November, the Japanese surplus grew by 76.9%. The Japanese economy relies greatly on its exports, and thus extremely positive data such as that one is very likely to support the Yen. The second reason that led to the Yen's bullish trend was the weakening of its rivals. The Dollar and the Euro have dropped against most of the major currencies last week, and when the Euro and the Dollar are dropping, their main counterpart - the Yen - is likely to strengthen as a result.
As for this week, a batch of data is expected from the Japanese economy. The most interesting publication that traders are advised to focus on is the Tertiary Industry Activity on Tuesday. This report measures the change in the total value of services purchased by businesses during November. A positive figure will be another indication that the Japanese economy is recovering, and is likely to support the Yen.