USD/JPY risk reversals hit 11-week high
|The one-month 25-delta risk-reversal (JPY1MRR) has been moving higher since the second half of March and is hovering at -1.425 at press time. This is the highest level since Feb. 21.
The recovery from the March low of -11.10 to the 11-week high suggests the weakening of bias for the yen puts - the bearish bets.
That said, a shift in bias for calls or bullish bets would be confirmed if and when the gauge crosses above zero. It is worth noting that for the several years USD/JPY risk-reversals have been skewed for yen calls.
The pair is currently trading near 106.85, representing a 0.23% gain on the day, but still down nearly 500 pips from highs near 111.70 observed on March 24.
JPY1MRR
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