Dollar/yen 10d 1w butterfly is now at the highest level since November as options markets expect wider moves in the cross. The recent leg higher is seen after Japanese PM Kishida's remarks on potential FX intervention by authorities
USD/JPY had been trading above 151.0, above pre-BoJ rate hike levels. Spot is now at prior intervention ground, so it is not surprising to hear these headlines hitting the wire
Despite the recent developments, volatility remains subdued as the structures is no longer inverted, 1w vols now stand near 6.0%, we had seen readings above 12.0% heading into the BoJ
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