Nov 21 (Reuters) - The latest price action in FX option markets should send a fresh warning to USD/JPY traders about the perceived potential for deeper FX declines.

There's been renewed demand for FX option implied volatility and JPY call/USD put options that would benefit from USD/JPY spot losses and implied volatility gains.

The latest demand comes in the wake of the comments from Bank of Japan Governor Kazuo Ueda early Thursday as traders continue to hunt for clues about future BoJ policy.

Benchmark 1-month expiry USD/JPY implied volatility, which is a realised volatility gauge and a key determinant of an FX option premium, has been elevated since including the December 18-19 U.S. Fed and Bank of Japan policy announcements. It's surged higher again on Thursday to a new post U.S. election peak at 11.9, having fallen from 13.0 prior, to 9.9 after the U.S. election FX volatility risk premium was pared.

FX Option risk reversal contracts determine the implied volatility premium for option strikes in one direction over the other. The benchmark 1-month expiry USD/JPY 25 delta risk reversals has significantly extended its downside strike over topside strike premium over the last week to trade new highs since September at 1.75, on Thursday.

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(Richard Pace is a Reuters market analyst. The views expressed are his own)

((Richard.Pace@thomsonreuters.com))