USD/JPY 1-week volatility remains elevated, with market caution increasing this week ahead of monetary policy decisions in Japan and the United States.
Currency options volatility in the foreign exchange market remains elevated as monetary policy decisions in Japan and the United States approach. The table shows 1-week, 1-month, 3-month, 6-month and 1-year volatility levels for USD/JPY, EUR/USD, EUR/JPY and GBP/USD. In particular, USD/JPY 1-week volatility remains high. Although the other currency pairs have also generally declined, their volatility levels remain elevated.
Market participants are increasingly speculating that the Bank of Japan meeting could produce a dovish rate hike, and there is growing concern that measures to curb yen depreciation could re-emerge. The possibility of coordinated intervention by Japan and the United States after the Silver Week holiday period has also been raised.
With caution over monetary policy strong in both Japan and the United States this week, volatility trends are expected to remain a focus of market attention.
The market information underlying this entry was reported as FX-related news by a media outlet affiliated with Minkabu.