FXStreet notes that the Japanese yen is today's sole exception to USD strength and has rediscovered its traditional safe-haven role. Economists at TD Securities remain focused on downside risks as the pair’s technical backdrop continues to deteriorate and real yield differentials point to further downside potential.

“USD/JPY remains heavy after trading below near-term support around 109.72 tentatively established last week. While we are keeping an eye on the 110.30/40 pivot zone, we are more focused on downside risks for the pair.” 

“USDJPY's technical backdrop has deteriorated meaningfully and real yield differentials also point to further declines.”

“As we look lower, our initial attention is focused on the MTD lows and top of the Ichimoku cloud. Both of which cluster around the 109.55 mark.”