The USD/JPY pair has dropped precipitously recently, with a flight to the Japanese yen. The yen apparently continues to prove its safe-haven status. The U.S. dollar is also viewed as a safe-haven currency. Yet it is a true risk-off signal when USD/JPY falls, indicating a flow out of the United States, and by connection, U.S. risk assets (including equities).
The yen is viewed as a safe haven for a few key reasons. Firstly, Japan runs current account surpluses (see chart below from TradingEconomics.com).
Current account surpluses provide the yen with a strong foundation; you