News

USD/JPY risk reversals drop to 1-month low, bull trap in the spot?

  • Risk reversals hit 1-month low, signal bearish sentiment in the options market.
  • USD/JPY may struggle to hold on to the rebound from 50-day MA support.

The one-month 25 delta risk reversals fell to -1.20 yesterday; the lowest level since Oct. 19. The decline from the recent high of -0.70 indicates increasing demand for the JPY calls (bullish bets on Yen).

The decline in the risk reversals, coupled with the head and shoulders breakdown on the USD/JPY chart could be an indication of a bull trap, i.e. recovery from yesterday's low of 112.48 to 113.00 could be short-lived.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.