• Short term traders holding USD/JPY positions before NFP data should beware

• The premium in short dated expiry options to capture volatility is huge

• Overnight expiry options captured NFP from Thursday and spiked accordingly

• Premiums have significantly increased since, fuelled by more USD weakness

• Premium/breakeven for overnight expiry straddles 170-pips either direction

• That's up from 105-JPY pips when first capturing today's U.S. jobs data

• Related comment nL1N32S0KF

  
  

  
  

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