USD/JPY's option skew coupled with a bout of risk aversion on Wednesday could mark the tipping point for the next downward lurch for the pair.
Demand for out-of-the-money USD call options is peaking around the same area as in January, just before USD/JPY started on a multi-week decline.
As Mark Cudmore outlines here, the short-term outlook is dire for global equity markets. That will help keep the yen on a firm footing.
Source: Bloomberg Pro Terminal
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