The near-term outlook for the yen remains bearish, ... obviously it will be difficult to come up with a rate hike and we do perceive some political pressures.

He's likely to make more bullish comments on the economy and deflation. That will put upward pressure on short-term interest rates, which is yen positive.

Good economic figures will surely be euro supportive. The euro-zone economy is expanding faster than expected.

In general reducing the public debt will require drastic public sector reform. To implement drastic reforms, Koizumi needs to gain public support.

The trade surplus figures showed strong exports and domestic demand. This shows the economy is robust enough to withstand a rate increase later this year, supporting the yen.

The markets have already priced in at least one rate hike and are beginning to price in the second rate hike by year-end. Combined with the steady recovery of the Japanese economy, those expectations are likely to push up the yen.