From a fundamental prospective, it seems as though every time the Japanese halt the bond market, USD/JPY moves higher. One could subscribe to the notion that investors, perhaps who wanted to sell, buy USD/JPY to get out of Yen. Additionally, maybe investors see the risk of devaluation or additional extreme policy implementation during the close of trade, therefore USD/JPY is a hedge. To the contrary however, the market is only paying 71 bps annually for Japan CDS… not seeing a lot of risk.
