JPY: Little Changed, But FX Options Volumes Dominated By USD/JPY Downside

USD/JPY sits little changed versus end Tuesday levels in latest dealings. The pair was last 145.30/35. Earlier lows were at 144.89, but the dip sub the 145.00 figure level proved to be fleeting. There is a option expiry at 145.00 for NY cut later, which may be influencing spot. 

• US equity futures are lower but away from session troughs, so that may be imparting some stability for yen. US yields are also off session lows.
• Still, FX options volumes for Wednesday to date has been dominated by JPY. USD/JPY has accounted for 41% of total trade volumes in the space per DTCC. We aren't outside of historical norms though from a volumes standpoint.
• Looking at the detail, the larger volume deals (notional of 100mn USD) have been skewed towards USD/JPY puts. Indeed there have been 5 deals with strikes between 140-145.00 done for this notional size.
• In terms of risk reversals, the 1 month has rolled back over, last near -1.90, against earlier September highs near -1.50. We are well above earlier August lows though close to -3.84. The one week risk reversal is back to -1.45, also off recent highs.