USD/JPY retreats from intraday high to 128.65 heading into Tuesday’s European session. In doing so, the Yen pair reverses the previous day’s rebound from the lowest levels since late May 2022, up 0.08% intraday by the press time.

That said, the quote’s latest performance could be linked to the indecision at the options market ahead of the key Bank of Japan (BoJ) monetary policy meeting, up for publishing on Wednesday.

It’s worth noting that the one-month risk reversal (RR) for the Yen pair, the ratio between call and put premiums, posted the biggest weekly fall since late December while posting a -0.520 figure by the end of Friday. However, Monday’s daily RR was positive to the tune of +0.190. Further to note is that the Daily RR marked the first positive print in four days while posting the biggest jump since January 05.

Also read: USD/JPY Price Analysis: Inverse H&S confirmation teases buyers around 129.00