• No surprises and minimal FX volatility from Bank of Japan policy decision

• FX option volatility premiums have consequently eased

• They weren't excessive pre BoJ, so losses have been relatively tame

• 1-week expiry implied volatility 10.0 from 10.6, 1-month 10.4 from 10.6

• There's currently an offered tone to USD/JPY FX options - and other pairs

• That's consistent with familiar spot/low realised FX volatility expectations

• Comes despite Wed's Fed policy announcement and ongoing Israel/Iran conflict

• Related - FX options wrap
USD/JPY FXO implied volatility

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