The Bank of Japan (BOJ) remains concerned about the spiking short-term interest rates and, therefore, injects cash into markets for the third day in a row.

The Japanese central bank offered JPY2 trillion (circa $17.6bn) via bond buys.

On Tuesday, the central bank made two offers, including one to buy bonds worth 2 trillion yen for immediate fund provision. Under another offer, it would buy 7 trillion yen to inject funds for a period between Dec. 15-16.”

Market reaction

USD/JPY is trading in a narrow range so far this Wednesday, virtually unchanged on the day at 113.70. Investors remain in a wait-and-see mode ahead of the critical Fed decision.