Yen Option Traders Brace for More Weakness Ahead of BOJ Decision

The Japanese yen has underperformed all its major peers in the past three months, and it may be at risk of further declines as political risks mount.

Strategists are bearish on the currency, predicting that Japan’s election outcome will drive up government expenditure, while the impact of US tariffs may slow the pace of interest-rate hikes. The sentiment jives with the view of options traders who are positioning for another drop in the yen.