The yen continued to strengthen against the greenback this past week as investors continued to seek safety amid the recent disappointing data from the world’s largest economy and its dour outlook.

The spotlight falls on the second revision of second-quarter US GDP figures, with the number expected to show that the annual growth rate slowed to 1.4 percent in the three months through June, the slowest in two years.

Yen traders will now look towards the Bank of Japan rate decision for further direction in the single currency.

Taking a look at the economic docket in the world’s third's largest economy last week, housing starts advanced 0.6 percent, while small business confidence pushed higher.

The economic docket for the following week is expected to show a widening trade surplus, while retail spending is forecasted to increase for the fifth time during the last six-months, and the data is likely to encourage an improved outlook for future growth as the recovery gathers pace.

The Japanese yen rallied to a fresh yearly high against the greenback.

Japan is expected to show a drop in consumer confidence on Tuesday as the unemployment rate as of late advanced to a fresh yearly high.

A Bloomberg News survey shows all of the 35 economists polled forecast the Bank of England to maintain its current policy this month, while investors are pricing a 3 percent chance for a 25 basis point rate hike.

The yen came into favor as risk aversion re-emerged on the back of concerns over the European banking system and Greek credit default swaps rising to a record high.

The Japanese yen outlook looks clouded as the currency re-couples with broad trends in risk sentiment even as confidence is pulled in opposing directions by the EU debt crisis and US economic data.