It's all about the big sigh of relief
One thing we were monitoring in the run up to the elections was the volatility indicators. EURJPY was where we saw a large amount of risk covering, which drove vols through the roof.
Looking at the same 1 month at the money options vols, we can see how much of an unwind we've had. Yen crosses can be jumpy cats at the best of times compared to their cousins but you can see that although EURUSD had it's own jump in volatility, EURJPY was out on its own, especially if you compare it to the action around the Brexit vote last year.
EURJPY & EURUSD 1m vols
This is something we can still keep an eye on into the second round as an indication to how much risk will be placed on that.
