• Benchmark 1-month expiry USD/JPY options just became more attractive

• Expiry date has shifted from April 30 to May 1 and includes May 1 BoJ

• BoJ meetings attract option demand for related volatility protection

• Implied volatility gauges actual volatility expectations for premium

• 1-month implied volatility fell 2025 highs at 12.4 to 9.0 in March

• It regained 10.4 Monday amid risk aversion/tariff risk and is now 10.8
1-month expiry FXO implied volatility

(Richard Pace is a Reuters market analyst. The views expressed are his own)