The Yen continued to strengthen last week. The bullish trend which was initiated a couple of weeks ago, proceeds against most of the major currencies. The Yen's sharpest rise was against the Pound, as the GBP/JPY pair fell to the 145.00 level.

What appears to impact the Yen the most lately are the statements delivered from the Japanese leadership, especially from the Bank of Japan (BoJ). Last week, the BoJ Governor Masaaki Shirakawa said on Monday that the BoJ is aiming to maintain an extremely accommodative financial environment in Japan. This has aroused speculations for greater investments in Japan, and has contributed to the Yen's rising trend.
However, the Japanese Finance Minister Naoto Kan stated on Thursday that he would prefer to see a weaker Yen in the future. It is known that the Japanese leadership aims for a weak Yan as a resolution against the decline in Japanese exports. If this target will remain in-place, the Yen will eventually drop as a result.

As for the week ahead, the most impacting dada from the Japanese economy is likely to be the Overnight Call Rate on Tuesday. The Overnight Call Rate is the Japanese Interest Rates Announcement. Currently, expectations are that the BoJ will keep rates at 0.10%, the lowest in the industrial world. If this will indeed be the case, traders are advised to follow the BoJ statement which follows promptly, as these releases tend to have large impact on the Yen.