One would expect great volatility in the good old days for USD/JPY when uncertainty rises. But as USD being favored for haven seeking and JPY dragged by fiscal worries, USD.JPY kept marching north. Interestingly, USD/JPY is unchanged on Wednesday despite rising risk aversion. It seems market participants are well aware of the hawkish risk from the BoJ next week and potential intervention, to avoid getting wrong footed in JPY shorts.
USD/JPY is unchanged at 160.36.