The market is jittery about a big increase in volatility in the yen as a slump in the currency to the lowest since 1986 raises the specter of Japanese intervention. Volatility spreads show that investors are demanding a premium to guard against sudden moves, bearish yen wagers are piling up, and a measure of active trader positioning is at its most negative since 2022. Warnings from Japanese authorities are unlikely to prevent the yen from weakening further, which increases the risk they’ll have to act on their threats to step into the markets, Carol Kong, a currency strategist at Commonwealth Bank of Australia, ... (full story)