Yen is one of the most traded currencies in the world, especially due to its low interest rate since the Yen is used in carry trades. Recently the Bank of Japan has expanded their purchase of Yen, hoping to overturn the deflation tide to inflation. Doubling this money supply is devaluing the Yen, boosting exports; but, increasing prices of imports at the same time, especially for commodities.
This week brings to the fray a series of drivers that could serve to extend or reverse last week's quick spike of volatility. OPEC, G7 and FOMC Meeting Minutes are on the docket, and will likely drive price action across major currency pairs.