The shift to defensive FX positioning is helping the Japanese yen, ING's FX analyst Chris Turner notes.

A decisive break under 148.50/65 may require an equity sell-off

"Equally, the threat of a global trade war and what it means for growth prospects can see global interest rates edge closer towards the low rates in Japan - also a yen positive. Looking for the yen to outperform on the crosses now will be a popular view. Pairs like EUR/JPY, AUD/JPY and CAD/JPY will be expected to trade lower as activity currencies are priced lower."

"USD/JPY is a little more difficult. A decisive break under 148.50/65 may require an equity sell-off or a big downside miss to Friday's US job reports - which would see President Trump likely take more interest in a lower Fed policy rate."