MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Japan Nov CGPI Rises 3.7% Y/Y, Import Prices Drop

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: JAPAN NOV CORP GOODS PRICE INDEX +3.7% Y/Y; OCT REV +3.6%

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Run Higher in Implied Vols Show's Market Concern of Acute JPY Volatility Post-BoJ

JPY
  • Difficult to overstate the run higher in JPY implied vols ahead of this week's BoJ decision. Overnight vols began to capture the BoJ decision today, and have rallied from ~18 points yesterday to north of 50 vol points this morning.
  • The contract hasn't traded this high since July 2016, in a session that captured a disappointing BoJ decision, a soft US GDP print as well as a warning from Japan's MoF on the strength of the JPY.
  • Soaring implied vol has significantly widened the implied breakeven for overnight ATM straddles, meaning markets would have to see an approx 275 pip move in either direction to cover the premium paid, a sure sign that markets are anticipating acute volatility in the wake of the decision.
  • On a tech basis, the path of least resistance remains down for USD/JPY, Moving average studies remain in bear mode, with the 50- and 200-dmas highlighting a potential bearish death cross. The focus is on 126.81, a Fibonacci projection.
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange BulletsBank of Japan (BOJ) Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.