What about the yen? – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman noted that the dollar was in a defined traded range against the yen from late-August through early-November, between JPY118.00 and almost JPY122.00.

Key Quotes:

“Three-month implied volatility remained firm, above 10%, which was the upper end of the range from March through the first three weeks of August. It then trended lower, hitting 8%, a three-month low in early November. Volatility has firmed but remains relatively soft near 8.7%.

While implied euro volatility is above its 50, 100, and 200-day moving average, implied yen vol is below similar moving average. In the spot market, the dollar is above the same moving averages. The subdued response to the break out in dollar-yen suggest many operators may not be exceptionally bearish the yen.

Three-month dollar calls against the yen were at a 1.4% discount to puts (equidistant from the money) in early September. The discount turned into a premium in late-October and reached a high near 0.30% after the US employment data. It has trended lower since. The three-month dollar calls are again at a discount to puts (-0.20%).

The …read more

Source:: FX Street