Relative interest rate spreads remain in focus for the Japanese yen, a fact clearly on display as the currency reacted to the bitterly disappointing US employment report.

The Japanese yen weaken against most of its major counterparts as currency traders increased their appetite for yields, and the rise in carry interest may continue to bear down on the currency as risk sentiment continue to dictate price action in the foreign exchange market.

The yen has certainly seen its share of volatility this week as headlines dominated by the threat of a Greek default fueled haven flows.

The Japanese yen looks ahead to a volatile week as the currency’s lingering correlation with US Treasury bond yields and sensitivity to risk sentiment trends puts it squarely at the epicenter of major event risk.

The Japanese yen continue to gain ground against most of its major counterparts and the low-yielding currency may appreciate further in the week ahead as market participants scale back their appetite for yields.

The Japanese yen advanced against the dollar this week as trader’s jettisoned the greenback on concerns that the economic recovery in the world’s largest economy may be faltering.

The yen fought back against the U.S. dollar this week, gaining a shade over 1.00 percent, as the currency fell below the 81.00 exchange rate once again.

The yen continued to slide against the greenback this week as one of the world’s largest exporters confirms a double-dip back into recession.

The Japanese yen struggled to hold its ground against the greenback as yields tied to U.S. Treasuries pared the decline from earlier this month.

The USD/JPY has fallen nearly 6 percent since the April highs as the yen continued its advance this week.