USD/JPY remains depressed at an intraday low around 138.55 as bears keep the reins during a second consecutive day amid early Tuesday.

The yen pair’s latest losses could be linked to the market’s easing of the previous fears, as well as downbeat options market signals for the USD/JPY pair.

That said, the one-month risk reversal (RR) for the USD/JPY pair, the ratio between call and put premiums, and braces for the second consecutive weekly print with the previous day’s -0.210 RR figure.

On the other hand, an easing in China’s daily covid infections from an all-time high and the announcement of more support measures for the nation’s ailing real-estate sector seemed to have favored the USD/JPY pair’s latest weakness.

Also read: USD/JPY slides towards 138.50 on mixed Japan data, pullback in yields, focus on China, Fed talks