The Japanese yen fell against all its major currency counterparts yesterday. The yen fell about 90 pips vs. the U.S. dollar, and about 120 pips vs. the euro. The yen also dropped about 150 pips against the British pound, and the GBP/JPY cross reached as high as the 132.65 level.

The Japanese currency slid yesterday after Japan's credit rating was downgraded for the first time in nine years by the Standard & Poor's. Japan's credit rating was lowered to AA- from AA. The credit rating was lowered due to persistent deflation and as political gridlock undermined efforts to reduce an $11 trillion debt burden. As a result, the yen instantly slid against all the major currencies.

As for today, no significant release is expected from the Japanese economy. Traders are advised to follow official comments from the Japanese leadership regarding the credit rating cut; any development on this issue is likely to have a large impact on the Japanese currency today.