Hedge funds are positioning for the dollar-yen exchange rate to fall below 150 by year-end, with some longer-dated options trades targeting a move as low as 140.

The most-active dollar-yen option on Tuesday was a put option expiring in November with a 142.86 strike price, according to Chicago Mercantile Exchange Group data. Total put volume of contracts expiring by year-end was over triple that of calls. Puts on the pair gain in value as the dollar weakens.

Dollar-yen traded at 153.61 at 8:44 a.m. Hong Kong time on Wednesday.

These trades reflect growing conviction among hedge funds that the yen will strengthen significantly against the dollar in the coming months, with market participants actively hedging against further dollar weakness.