The Yen saw a volatile session against the major currencies during last week's trading. The trading was characterized with many ups and downs and was concluded in a downtrend for the Japanese currency. This was mostly noted against the Pound, as the GBP/JPY pair rose to the 151.30 level.

The main publications from the Japanese economy didn't seem to have a large impact on the Yen. The Average Cash Earnings dropped by 1.6%, beating expectations for a 2.0% drop. This continues to show that the Japanese economy is yet to recover. The Leading Indicators report, which is a composite of 12 economic indicators and is designed to predict the direction of the Japanese economy, reached expectations for a 86.4% result. However, this deports had little affect on the Yen, as it is once again proven that what impacts the Yen mostly are the publications from the U.S economy. Because the Japanese economy relies on American consumption, it is quite clear that negative U.S data will have a negative affect on the Japanese economy. As a result, the Yen weakened due to the poor employment data from the U.S.

As for this week, the most impacting data from the Japanese economy appears to be the Core Machinery Orders report, schedueled for Tuesday. This is a leading indicator of production, and thus tends to have a large impact on the Yen. In addition, traders should follow the leading publications from the U.S economy, as they have proven to have a sustain affect on the Yen.