USD/JPY has been able to shrug off risk aversion, falling US yields (10 tear note back below 3%, down 12 bp) and selling of EUR/JPY to rally to 80.85 from 80.60 late this morning. Looks like the market is still very short this pair and can’t get enough on the dips.

Odds are you have funds covering shorts in the DXY, giving the dollar a boost across the board.