The Yen dropped against 14 of its 16 major counterparts yesterday as Japan's former top currency official said there are few reasons for the yen to rise further. Further pressure on the Yen versus the EUR came after the International Monetary Fund (IMF) cut its forecast for write downs on loans and investments, signaling that economic recovery is indeed on its way and reducing the appeal of the safe heaven currency.

The Bank of Japan's Tankan survey today showed an index of confidence among large manufacturers improved to minus 33 from minus 48 in June. While an improvement, a negative number means that pessimists still outnumber optimists. With no major news from Japan today, the Yen's direction will likely be set by the array of news coming from the U.S and Europe throughout the day.