Options market data shows that the Japanese government may still tolerate further depreciation of the yen until it takes steps to support the yen. Traders are currently willing to raise the dollar to 165 to include in pricing, which means that the yen still has room to depreciate by about 1.6% compared to the current level, and the current exchange rate is close to its weakest level in nearly 40 years.

Options market data shows that the Japanese government may still tolerate further depreciation of the yen until it takes steps to support the yen. Traders are currently willing to raise the dollar to 165 to include in pricing, which means that the yen still has room to depreciate by about 1.6% compared to the current level, and the current exchange rate is close to its weakest level in nearly 40 years.