The US dollar is continuing its downward slide this week as Japan returns from its Golden week holidays and hops on the trend.  Comments this weekend from US Treasury Undersecretary Tim Adams stating that countries should stop intervening in currency markets indicates that the current administration is happy with the weaker USD and there is more room on the downside.  Berkshire Hathaway CEO Warren Buffet also commented on the current state of the Greenback and expressed concerns about the growing US trade and current account imbalances, stating that these could trigger â�,��"some chaotic markets in which currency adjustments play a partâ�,�. 

Vols are better bid this morning following market activity and in anticipation of this weekâ�,��"�s Fed rate announcement.  JPY calls are well bid against USD and EUR with the 1M 25 delta risk reversal trading at a premium of 1.1/1.4 over the JPY puts

OPTION TRADE IDEAS

Below please find some strategies, which depending on your view might be applicable.  Please bear in mind that all of these trades can be applied to any of the currency pairs, which may be traded.  All barrier levels, strikes, triggers, payouts, and maturity dates can be tailored to each individualâ�,��"�s views.

Kathy Lien is the Chief Currency Strategist at FXCM.

Disclaimer: Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.