Yen Seen Heading Into Calmer Waters After BOJ's Guidance

The yen is headed for smoother sailing, at least in the view of options traders. Implied volatility -- expectations of price swings derived from options contracts -- dropped to the lowest in nearly a month for the currency after the Bank of Japan became the latest central bank to begin issuing forward guidance. One-month implied volatility for the yen is now sitting within about 45 basis points of its lowest since 2014.