⚠️Yen Short-End Premium Rises Heading Into BoJ Meeting: Cable FX Macro
- Rosbel Durán
- Mar 5, 2023
- 1 min read
**As seen in Macro Walk report 03/03/23, subscribe at cablefxm.co.uk/reports
Implied volatility in USD/JPY increased sharply on the week as we are set to hear from the BoJ, this would be Kuroda's last official monetary policy meeting as head of the Japanese central bank
Options markets bid 1w implied volatility in USD/JPY by 5.3 vols on the week to 15.455%, the curve in the cross is now inverted as 1m and 6m tenors throw readings of 11.83% and 11.05%, respectively
The vol premium in 1-week USD/JPY ATM is now at 734bps, this is the highest since September. The move came as the options market rises expectations in volatility, while realized 1w vol fell from 11.01% to 6.55%
Comments