Yen Poised for Big Swings on Intervention Threat, Charts Show
- Premiums against sharp swings in yen above three-year average
- Investors are more bearish on yen than other currencies
This article is for subscribers only.
The market is jittery about a big increase in volatility in the yen as a slump in the currency to the lowest since 1986 raises the specter of Japanese intervention.
Volatility spreads show that investors are demanding a premium to guard against sudden moves, bearish yen wagers are piling up, and a measure of active trader positioning is at its most negative since 2022.