💹⚠️USD/JPY Implieds Continue to Trend Lower: Cable FX Macro

• USD/JPY weekly ranges continue to trend lower, the downtrend is pressuring implied volatility

• Our measure of USD/JPY weekly range 10-week average is now at 188 pips, this compares to 482 pips at the beginning of the year

• So far, the lowest weekly range this year was seen in September at 114 pips

• Implied volatility in the pair faded the uptick seen in June and has extended lower as realized vol remains subdued. The last read in the 1m tenor stands at 7.77%, lowest since March 2022