JPY fell against virtually all of its major rivals throughout the day yesterday, and in overnight trading. The USD/JPY has gone up some 80 pips over the last day, while GBP/JPY rose an astonishing 270 pips during the past 24-hours. The reason behind the Japanese currency's drop is largely the gains made on the global stock market. As investor confidence in the global economic recovery increases, safe-haven currencies like the dollar and yen typically drop as a result. As long as the stock market continues to see gains, traders can expect the yen to drop against more volatile currencies.
Today, the JPY value will largely be determined by U.K. and euro-zone economic indicators. Traders will want to pay attention the U.K. Claimant Count Change as well as European industrial production figures. Both are forecasted to show improvement over the previous month's results. If analysts' predictions are true, investor confidence will likely continue to rise. In this case, traders can expect the yen to drop further.