The Yen saw volatile trading during last week's trading session. The Yen rose significantly against the Dollar, and the USD/JPY pair dropped below the 93.00 level. The Yen rose against the Euro and the Pound as well as the week began, only to erase its gains.
The main reason for the Yen's bullish trend fromm the beginning of the past week seems to be the high uncertainty in the market. Investors have concrete doubts regarding the Euro-Zone's willingness to bail out the Greek economy. This has turned investors to look for safer assets such as the Dollar and the Yen. The Yen as a result rose against all the major currencies.
However, once the European governments declared a rescue plan for Greece, the momentum has rapidly switched directions. Investors have regained confidence that the Euro-Zone will sustain this crisis, and traders promptly opened long positions on riskier investments such as the Euro and the Pound. Whenever risk-aversion dominates the market, the Yen is likely to weaken, and at the moment, the Yen's bearishness has potential to proceed further.
As for this week, a batch of data is expected from the Japanese economy. Traders are advised to follow the leading publications and also to pay attention to the speech by Bank of Japan Governor on Wednesday. In addition, the Greek bailout plan is likely to impact the market this week as well, and traders should remain updated on this issue.