• Premium for JPY calls over puts on risk reversals trades new highs since Dec

• 1-month expiry to 1.65 from 1.1 last week and the 3-month expiry to 1.6

• JPY calls allow holders to buy JPY, and puts to sell JPY versus the USD

• There's been increased demand for JPY call options since 150.00 broke

• Highlights market fears that deeper USD/JPY declines will eventually come

• USD/JPY losses would raise cost of options and reward those already long
USD/JPY 25 delta risk reversals

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