The Yen's bullishness was halted yesterday, as the Yen dropped against all the major currencies. The Yen fell 80 pips against the Dollar, over 200 pips against the Euro and about 250 pips against the Pound.
Recent speculations regarding a Euro-Zone rescue plan for Greece have reduced demand for the Yen. Optimism regarding a potential Greece rescue have revived demand for higher-yielding assets, and weakened the Yen. In addition, a Chinese stock rally has helped to reduce risk aversion, driving investors to buy back riskier currencies such as the Euro and the Pound. It currently seems that as long as the Euro continues to strengthen due to optimism regarding the Greek economy, the Yen is likely to drop further.
Today, Japanese banks will be closed in observance of National Foundation Day, and low liquidity is likely to take place. Traders are advised to follow the leading publications from the U.S, especially Bernanke's speech, as this is likely to impact the market the most today.