ING Research sees a scope for another mini-rally in USD/JPY towards 130. 

"The risk-off mood has, for a change, offered some support to the yen, which also appeared to get some extra buying interest ahead of tomorrow’s Bank of Japan policy announcement, where JPY volatility will be a central theme. A key question is whether it’s going to be – if anything - the volatility itself (i.e. the rate of change) or a specific level of USD/JPY that would  trigger firmer action by Japanese authorities to support the yen. We think the former is more likely to be the case, and we continue to highlight how FX intervention would not be  straightforward and would require coordination with other G10 countries, especially with the Fed/Treasury," ING notes.

"The lack of strong language to address JPY weakness by the BoJ tomorrow - given that no change in the ultra-dovish monetary stance looks likely - could trigger another USD/JPY mini-rally towards the pivotal 130 mark, although the global risk environment may put a cap on  the pair for now," ING adds.