Dollar-Yen Poised To Test 150, Option Positioning Shows As LDP Rout Looms

Traders are turning less bearish on the dollar’s prospects versus the yen, according to Bloomberg's FX strategist Vassilis Karamanis, who notes that the gamma outlook is suggesting room for a rebound toward the 150 level.

USDJPY vol skew has shifted higher across tenors compared to a week ago, with spot at 147.32 — more than 3% higher since its June 13 low at 142.80. The move is pronounced at the belly of the curve as the front-end already priced out a significant yen rally earlier this month.