USD/JPY risk reversals at 7.5-week highs, point to more JPY pain

USD/JPY three-month 25 delta risk reversals (JPY1MRR) are currently trading at -1.462; the highest level since Dec. 14. The gauge stood at -2.275 on Jan. 3.

The sharp rise from -2.275 to -1.462 indicates the JPY bullish bias or the demand for the JPY call options has weakened significantly in the last four weeks.

It appears as though investors are expecting USD/JPY to break well above 110.00 over the next three months. As of writing, the pair is trading at 109.86, having clocked a high of 110.4.

JPY1MRR

Feb 5, 2019

RBA: Rates on hold, 'gradual' progress on track - TDS

Annette Beacher, chief Asia-Pacific macro strategist at TD Securities, points out that the RBA left the cash rate at 1.5%, extending the record run of

了解更多 Previous

Feb 5, 2019

BOJ's Kuroda: No change to BOJ's view of the economy after wages data revision

Bank of Japan Governor Haruhiko Kuroda, while speaking at the lower house budget committee on Tuesday, said there was no change to the central bank's

了解更多 Next