The Japanese yen fell against most of its major currency rivals during last week's session. The yen dropped about 180 pips against the euro and about 240 pips vs. the British pound. The GBP/JPY cross has reached as high as the 135.45 level last week.

The yen fell last week as reduced risk-aversion, caused by a rally of U.S. stocks, has boosted demand for higher-yielding assets and weakened demand for safe-have currencies, such as the yen.

In addition, it was reported last week that Japan's economy contracted for the first time in five quarters. Gross Domestic Product shrank an annualized 1.1 percent in the three months ended in December 31. As a result, China's economy overtook Japan's as the world's second largest for 2010.

As for this week, traders are advised to follow the leading economic releases from the Japanese economy, such as the Trade Balance and the Tokyo Core Consumer Price Index. Positive data might correct some of the yen's losses.