• USD/JPY from 139.89 low Tuesday to 143.21 after NY close and 141.67 Wed

• Option premiums slightly lower after initial bout of volatility

• However, recent trade flow themes intact - buyers of downside protection

• Traders took advantage of spot rebound which reduced the cost of JPY calls

• Shows market still worried about USD/JPY trading back under 140.00 and lower
USD/JPY 1-week and 1-month expiry FXO implied volatility

(Richard Pace is a Reuters market analyst. The views expressed are his own)