Front-end tenors have seen a rise in yen topside demand, 1w-3w tenors rose by more than 50bps on the week, and the 1m tenor is now covering the BoJ monetary policy meeting and February CPI data from both the U.S. and Japan
1m USD/JPY implied vols are closer to the top of the G10 range at 7.70%, EUR/USD ticks at 5.55%, and AUD/USD reads 7.75%
Risk reversals are now the most yen-bullish since early January, last at 1.53 vols. Looking beyond the 1m tenor, yen topside demand eases, the 9m tenor is of particular interest as we head into the U.S. election
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