• Big jump in 1-month expiry FX option contracts Monday to reflect 15 June Fed

• However, 1-month USD/JPY expiry is June 16 so also captures June 16 BoJ

• 1-month USD/JPY reached 10.85 from 9.2 on Monday, setbacks limited to 10.5

• That suggests overnight expiry vol of 28.0 before BoJ - similar to April

• For context, overnight implied volatility on a regular day is around 10.0

• Also of note is increased JPY call (USD/JPY downside) strike premiums

• 1-month 25 delta risk reversals jumped 1.2 to 1.7 JPY calls over puts

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