The options market suggests the "intervention red line" has shifted to 165, traders betting on the yen depreciating another 1.6% before Japan's official intervention.

According to the Wisdom Financial and Economic APP, data from the options market shows that with the Japanese yen exchange rate approaching its lowest level in nearly forty years, the Japanese authorities may still tolerate further depreciation of the yen before intervening. Traders are currently willing to price the USD/JPY exchange rate at 165, which means the yen has about 1.6% room for further depreciation compared to the current level.