Dollar-yen rose to around 157.83-157.85 early in the London session, while market concerns about intervention are intensifying. The pair had previously fallen to the upper 156 range. The 1-month risk reversal, a statistical indicator, is declining.
Early in the London session, dollar-yen extended its high to around 157.83-157.85.
Yen buying emerged during New York trading hours on 18 September, bringing the pair to this level, after which it also plunged to the upper 156 range.
In today's currency options market, the 1-month risk reversal (25-delta) fell at one point to -2.3175, indicating that the yen call-over widened and demand for hedges against yen appreciation increased.