• USD/JPY posted new 34-year highs at 151.975 (EBS), 152 barrier defence held

• More related verbal intervention, with real intervention risk already high

• FX option traders were seen covering short topside gamma in Asia Wednesday

• Short gamma covering is need to buy near date expiry options, 152-3 favoured

• Implied volatility consequently higher - 1-month to 7.5 vs 7.1

• That's still low end of long term range, highlights intervention worries

• Intervention expected to quash vol if it does materialise

• COMMENT-Hedging the USD/JPY short gamma volatility surge nL2N3G50F1

• FX option trade flows signal USD/JPY directional risks nL2N3G40WI

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