Japan has the largest USD reserves in the world, valued at over $700 Billion. The recent appreciation of the Japanese Yen against the dollar has effectively devalued these reserves. In fact, for each Yen gained against the Dollar (i.e. a move from 105 JPY/USD to 104 JPY/USD), Japan loses over $7 Billion Dollars. As a result, Japan's central bank may follow Russia's example by shedding some of its USD reserves, and replacing them with Euros. Analysts predict that Japan will ultimately hold Euros and USD in a 1:1 ratio. Japan is feeling additional pressure as a revaluation of the Chinese Yuan looms on the horizon. If its central bank doesn't begin gradually selling off its dollar reserves now, it may find itself competing with China for buyers, which will only accelerate the decline of the dollar. Forexnews.com reports:

Japan should especially start lightening its hand from US assets before China initiates the fray when it eventually revalues its currency and sees less of a need to purchase US dollars in intervention over time

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