The fundamentals may be stacked against the under-pressure yen but traders are still willing to bet on a sharp move higher amid the risk of a global recession or an unlikely Bank of Japan policy change.
Highly speculative one-month dollar-yen put options cost over two percentage points more than equivalent calls -- a sign of increased demand for bullish yen bets, according to data compiled by Bloomberg. The so-called delta 5 out-of-the-money options are seen by traders as having only about a 5% chance of being exercised before expiring.
