An unexpected drop in the Japanese unemployment rate continued the theme of improving fundamentals.

After seeing steady gains throughout the week, the yen was battered following a better than expected U.S. non-farm payroll report.

A week full of major event risk should put risk sentiment up for grabs which clouds the outlook for the yen.

The outlook for the Japanese yen has become clouded as a likely recovery in risk appetite competes with currency traders backtracking on overdone US Federal Reserve rate hike expectations for control over near-term price action.

The Japanese yen follows risk appetite trends that follow the progress on a possible Greek bailout.

The Japanese yen may temporarily decline after five consecutive weeks of gains as an upward correction in risky assets boosts carry trades at the expense of the stand-by funding currency.

Looking ahead to next week, the Bank of England (BOE) is anticipated to leave rates unchanged.

There is potential for very mixed results following the past week’s German ZEW report, which showed that investors are feeling more confident in current economic conditions, but are becoming increasingly pessimistic about the outlook.

Looking ahead to the next week, there will be a number of economic releases from Japan.

Looking ahead to the coming week, the economic indicators due to be released are not likely to be groundbreaking for the British pound and may not provide enough impetus to push the GBP/USD back above its 200-day moving average.