There's so much uncertainty around today's Bank of Japan decision and a good way to manage risk is to look at implied volatility around the decision. Chris Weston at Pepperstone notes that one-week implied volatility in USD/JPY is 350 pips, which is the largest since the height of the pandemic scare.
Check him out here.
Trader thoughts - all eyes on tomorrows #BoJ meeting
— Chris Weston (@ChrisWeston_PS) January 16, 2023
Given sky high levels of implied vol in the JPY, this is an event that needs to be managed - with the potential for huge moves in the JPY & possible spillover into broad G10 FX
Here's a 2min primer - take a look💪#USDJPY pic.twitter.com/yBOjDQA1BE
