The Yen saw an extremely bullish session during last week's trading. The Yen rose over 600 pips against the Euro and over 500 pips against the Pound. The Yen even saw a rising trend against the recovering Dollar, and the USD\JPY pair dropped to the 89.20 level.
The Yen's bullish correction appears to be a direct result to the positive data published from the Japanese economy. The Japanese Unemployment Rate dropped to 5.3%, its lowest rate in 4 months. The Japanese Preliminary Industrial Production rose by 1.4% in September, beating expectations for a 1.1% rise. This means that the inflation-adjusted value of output produced by manufacturers rose by 1.4% in September as opposed to August. The Yen strengthened despite the fact that the Bank of Japan (BOJ) left the Japanese Interest Rates at 0.10%, the lowest level in the industrial world.
As for the week ahead, many interesting news publications are expected from the Japanese economy. Traders should focus on two main events: the BOJ Governor Shirawaka speech on Wednesday and the Monetary Policy Meeting Minutes. On these events the BOJ will most likely reveal its future plans for the Japanese economy, and this is likely to impact the Yen.
