The Yen dropped against most of the major currencies during last week's trading session. The Yen dropped about 200 pips vs. the Dollar, and about 400 pips against the Pound.
The main reason for the Yen's bearish trend seems to be due to a political turmoil in Japan. A recent survey showed that more than half of the Japanese citizens want Prime Minister Yukio Hatoyama to resign. This has led to speculations that the Yen's safe-haven appeal will be damaged, and as a result will weaken the currency. The Japanese coalition could be at risk, especially after the Social Democratic Party has left the government, following Hatoyama decision to dismiss its only Cabinet minister.
As for this week, traders are advised to follow all the developments regarding the Japanese politics. It currently seems that as long that the uncertainty regarding the Japanese leadership remains, the Yen could drop further against the major currencies, especially the Dollar and the Pound.