While the yen started yesterday quite strong, the currency weakened later in the day as US rate hike expectations rose following strong PMI data. This morning, USD/JPY is trading flat on limited data. Earlier in the week, the yen weakened on the Bank of Japan's tankan survey that showed manufacturing growth at its highest levels in a decade. As positive data out of Japan typically boosts risk sentiment (causing Japanese investors to park their funds offshore), the yen fell on the news.
USD/JPY is currently trading just above 112.80. EUR/JPY continues to trade flat, with the pair trading above 132.60 currently.
Looking at economic data this week, on Monday the BoJ's tankan's survey painted a rosy picture of manufacturing expectations (big manufacturers outlook of 19 vs. 16 expected). On Tuesday, consumer confidence figures came in above the last reading (43.9 vs. 43.3 previous). On Thursday, data showed that Japanese investors were selling foreign bonds while buying foreign stocks. Finally, foreign reserve data and leading indicators will be published on Friday.