The dollar is higher against the yen and, according to Saxo Bank's head of fx strategy, John Hardy, there are several reasons.

Hardy points to a relief rally after it appears that there won't be any systemic risk following the Deutsche Bank problems, strong US ISM data and higher US rates.

In the short term Hardy believes that the selling of Japanese yen is technically driven, but if the trend is to sustain longer term it will need fundamental support.

Read more from John's FX Update here.