This happens to frogs sometime. It might be caused by a fatty diet, but since you have an American Green Tree frog there's no way you could have been feeding it mice. Otherwise, it's probably some form of cataract. The eye could have been injured. I've never heard that there's anything you can do about it, but I might be wrong. Just make sure it eats regularly, maybe try tweezer feeding if you don't already.
Also the photohosting on this site is messed up but you can download a photo to something like flickr or photobucket and post it here from that site.