Assassin hiding in town in Japan (5)
I believe the answer is:
ninja
'assassin' is the definition.
(I've seen this before)
'hiding in town in japan' is the wordplay.
'hiding' says the answer is hidden in the clue.
'NINJA' is hidden in the letters of 'in town in japan'.
(Other definitions for ninja that I've seen before include "Expert in espionage" , "Japanese stealth fighter" , "Assassin from Japan" , "Japanese trained assassin" , "One who steals" .)