On the one hand, the yen enjoys safe haven demand as capital markets attempt to correct and move away from highs. The dollar is saving its strength ahead of a slew of macro data on the employment market for June, where there might be strong numbers that could cause the Fed to toughen its rhetoric.
On the other hand, Japanese macroeconomic releases have been patchy, so the market has chosen to brush them aside. Thus, the May unemployment rate rose to 3% compared to 2.8% previously, and this is hardly market-making news. Retail sales for the same month were up 8.2% in line with forecasts, following an 11.9% upward spike in April. The yen tends to ignore macro data unless it relates to inflation or GDP, since everything else has a little or no impact on the currency’s behavior.