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At 9:55am Japan time, the central rate for USD against yen is set for the day, based on trades in a short window. Japanese banks use it to quote retail customers, and importers and exporters settle against it.

Large orders cluster in the minutes before the fix. Because dollar demand from importers is typically bigger than supply from exporters, USDJPY can be pushed up toward the fix, and sometimes it drops after.

The effect grows on gotobi days, when settlements concentrate. Quiet Tokyo mornings often show a sudden burst of movement at 9:45 to 10:00, with no news to explain it.

Scalpers trading USDJPY at that hour benefit from knowing the time. A breakout at 9:50 might simply be fix flow, and it can reverse by 10:05.

Marking the fix window on the chart as a shaded band is an easy way to avoid being surprised by it.

Do traders here watch the Tokyo window, and how reliable has the reaction been?

I trade a bit of the Tokyo session from Europe, so I see the fix window early in my morning, and it's been one of the more reliable quirks I know. On gotobi days especially, I've noticed USDJPY grinding higher from about twenty minutes before the fix, then often giving some of it back in the following quarter hour. Not every time, but often enough that I take it into account.

I don't trade the move itself. What I do is refuse to trust any breakout in that window. I lost a few trades early on buying what looked like a clean range break just before the fix, only to watch it unwind by ten past. Marking the window as a shaded band, like you suggest, is what finally made me stop.

The reaction has been less clean on days with big news out of Japan or a large US move overnight, when the fix flow gets swamped. On quiet mornings, though, it's close to the only thing moving the pair, so it's worth knowing about.