Yen option premiums have reached their highest level since 2024 ahead of the BOJ’s policy meeting. Traders expect the central bank to provide important forward guidance, while yen hedging costs remain elevated.
As the BOJ’s policy meeting approaches, yen option premiums have risen above previous levels. Markets are closely watching for indications of the central bank’s forward guidance.
Traders expect the cost of hedging yen exposure to rise ahead of the BOJ’s next policy decision, with costs seen as having climbed above previous levels.