USD/JPY more than 50 pips from the lows

The extremely strong bid in the yen earlier is fading. It looks like the regular back-and-fill so far but keep an eye on bonds.

Treasuries are more-or-less flat today which goes against the risk aversion narrative. What's evolving is an independent bid in the US dollar. That makes sense on speculation the Fed will be more hawkish tomorrow.

Technically, there is minor inverted head and shoulders pattern forming in the pair.

The break of the neckline targets a return to 113.60. The BOJ is probably only a one-day story and even if the Fed isn't overly hawkish, the pair could rally with stocks. Remember that FOMC morning (before the decision) is one of the best times for stocks over the last 8 years.