USD/JPY - Vols near 6-week low despite election risk

USD/JPY one-month at-the-money (ATM) option volatility remains around 6-week lows, although Japanese election risk could be limiting the losses.

The volatility topped out at 10.10 following the Abe'e election announcement on Sept. 25. In the subsequent days vols continued to lose altitude. It dropped to 6-week a low of 8.45 and was last seen hovering around 8.63.

Meanwhile, the daily realized volatility (historical volatility) is just 5.1.