This week we have seen all of the Japanese Yen crosses traded sharply lower today led by the sell-off in USD/JPY which dropped around 180 pips from last week closing price. This risk-off liquidation caught many traders by surprise especially after better than expected spending and jobs data from US. But if we look at broad picture the reason for this sell-off were on the cards due to Japanese stocks poor performance, weaker data from China and a significant depreciation in the Yuan, ongoing tension in Crimea. All these events lead to risk-off sentiment and it is generally very difficult for USD/JPY to rally without a rise in the Nikkei and U.S. yields. Moreover, in coming weeks I am expecting further strengthening of JPY against other major currencies.