The yen could remain under downward pressure for some time amid concern over economic and corporate earnings prospects in Japan.

There is speculation that the Japanese government is committed to a weak-yen policy and that the Bank of Japan is leaning in favor of buying foreign securities to funnel more money into the banking system, a scenario typically bearish for the yen.

Indeed, as indicated by highly placed government officials, the yen's depreciation is now widely considered to be in Japan's national interest.