The options market is flashing a bearish signal for the Japanese yen, with one-year options sentiment turning dollar-positive for the first time in over three years. This shift comes as interest-rate differentials continue to favor the U.S. dollar, and Japanese authorities have refrained from intervening in currency markets.

The yen depreciated 0.6% to 162.31 against the dollar on Monday, nearly negating its recent gains that followed softer U.S. payrolls data. This move suggests growing investor conviction in dollar strength against the yen.