The weak manufacturing data from the NY Fed is dominating trade as equities unwind the big gains made yesterday.
Despite the risk-off attitude, USD/JPY is spiking as the downtrend in place for more than two months is snapped, spurring short-covering.
We saw similar price action in EUR/CHF yesterday as stale shorts covered. That action was short-lived in EUR/CHF. It may be more durable in USD/JPY if we can hold above 80.85, which is now support.