⚠️💹Dollar/Yen Vol Premiums Remain Above Par: Cable FX Macro

• USD/JPY volatility premium in the 1w tenor is holding above par as implieds tick at 8.82%,however, the move comes after realized volatility catches up on Friday session

• The week saw 1w vols rise across the board, USD/JPY implieds are up 18bps on the week while the EUR/USD equivalent rise 75bps

• USD/JPY risk reversals continue to favour puts over calls, 1m last at -0.78 and off MTD highs