• USD/JPY 2-week 161 JPY put/USD call bought on several hundred million USD early Tuesday

• Such trades not uncommon this week, covering risk of further USD/JPY recovery from post-intervention lows

• JPY call buyers remain active too, still hedging the risk of intervention and lower USD/JPY

• Risk reversal options show JPY call-over-put volatility premiums easing - 1-month 1.9 from 3.0 post-intervention

• 1.4 was the pre intervention level and likely support on any further declines while the intervention risk lingers
USD/JPY 25 delta risk reversals


(Richard Pace is a Reuters market analyst. The views expressed are his own)