After having consolidates near 103 handle almost through the last US session, the USD/JPY pair finally broke to the upside at Asia open, rising as much as 103.39, before meeting fresh supply and resuming the broader downtrend post-Brexit.

The sell-off in the dollar-yen pair was triggered by upbeat Japanese fundamentals released earlier on day. Japan May CPI came in at -0.4 % y/y versus -0.5% expected, while the BOJ Q2 Tankan Large Manufacturing Index: came in stronger at 6 versus 4 expected.

While a major turnaround in the risk condition, after the oil prices fell back in the red, also added to the safe-haven bids for the Japanese currency and dragged USD/JPY to 102.44, daily lows. Both crude benchmarks now drop nearly -0.50% versus +0.80% seen previously.

The CBOE Volatility Index (VIX), risk barometer, ended a four-day losing streak and now stages a minor-rebound towards 16 handle, suggesting that the persisting risk sentiment has come under renewed pressure. Hence, amid risk-off market profile, investors flock to safety bets such as the yen, gold, treasuries etc.

While the yield spread between the 10-yr JGBs and 10-tr US treasuries tilt in favour of the Japanese yen, further justifying the aggressive selling seen in the major this Friday.