The mixed bag of recent U.S. economic numbers would mean that market sentiments of this pair have been speculative ahead of next month's fed rate decision.

We don't see any reasons to short dollar but short term corrections up to 121.991 (23.6% fibo levels).

Delta risk reversals of USDCHF for next 1-3month: The OTC options market appears to be more balanced on the direction for the pair over the 1-1-3m time horizon and as a result delta risk reversal for USDCHF was turning into slightly negative, thereafter dollar rebounds as per delta risk reversal computation coupled with recent booming economic number of U.S.

On the other hand, delta risk reversal for the pair is least negative values among entire G7 currency space for next 1 week - 1 month.

As a result, we reckon that for next 2 months time Yen may pretty much gain out of lots of manipulations and ambiguities are surrounding around dollar but fundamentally we don't see any bearish witnesses on dollar.

With dollar index (DXY) approaching the psychological barrier of 100.0 may also weigh, it is also understood that ATM contacts of USDJPY are gradually reducing implied volatilities (second least IVs which is good for option holders) ahead of much awaited fed's meet which is underway that could prop up market speculations again (see current 1w & 1m contracts).

Make a note that the pair is likely to perceive implied volatility close to 8.6% of 1M ATM contracts that has increased from week's 6.25%, thus we recommend deploying short put ladder spreads that contains proportionately less number of shorts and more longs which would take care of potential slumps on this pair and significantly higher volatility times.

So, short ITM put with 3D expiry since implied volatility is inching higher which is good for option writers and buy 2 lots of ATM and OTM put with 1w expiry.