Hedge fund demand for USD/JPY put options surged after the pair moved above 160,
with May put volumes more than triple calls, signaling positioning for a
potential drop amid intervention risks. The yen hit its weakest since July 2024,
prompting warnings from Japan’s top currency official Atsushi Mimura and Finance
Minister Satsuki Katayama. Activity is focused on short-dated options,
reflecting near-term event risk. Rising oil prices and safe-haven demand for the
The dollar has pressured the yen, down 1.9% this year, while higher implied
volatility has also driven some funds to sell options.