The Japanese Yen may continue to strengthen against its major counterparts over the following week as market participants curb their appetite for higher risk/reward investments.

The more intense debate between Europe and the some other major economies is how much government support should be used to prop up a recovery and how long it should be kept in place.

Scheduled event risk will moderate even further over the coming week –- a precarious position considering the dollar and most of its major pairings are on the verge of a breakout.

It is no surprise that the Japanese yen has been on the short side of so many trades over the past few months.

The statistics on the US dollar are ghastly. Through the month of May, the world’s most actively traded currency plunged 547 pips or 6.5 percent on a traded weighted basis to its lowest level this year. With the momentum building, there was no shortage of reason to sell this currency.

Is the EUR/USD breakout just beginning or is this the last gasp?

Market participants see the eventual recovery in the global economy; but where is the US on this timeline?

It is two different things completely to analyze the health of the Japanese yen and forecast the direction of USD/JPY.

Forecasts from economists and traders are in agreement as far as the immediate change in the benchmark lending rate.

It is fitting that the euro is on the cusp of a dramatic trend change considering what is at stake from the fundamental side of the currency this week.