As we mentioned in our discussion of the Australian dollar and New Zealand dollar, risk aversion returned on Tuesday, weighing heavily on high-yielding currencies and rewarding the low-yielding Japanese yen.
In fact, the Japanese yen gained a whopping 1.89 percent against the Aussie, 1.45 percent against the British pound, and 1.2 percent against the Kiwi. That said, there is still downside potential for the Japanese yen crosses, including USD/JPY, this week.