One-month risk-reversals point to modest upside for USD/JPY, which we suspect correctly points up the risk of Japanese intervention, the pair's oversold daily profile and growing likelihood that both the ECB and Fed will have to throw caution to the wind and provide fresh easing. Time is running out for Spain and Italy. The next FOMC is next Tues, while the ECB's is the following Thur. Markets are already bracing for easings, the question is when will they come. USD/JPY has room to retest last two day's highs in low 78.80s.