USD/JPY risk reversals: Recent drop in spot has revived interest in JPY calls
|- USD/JPY risk reversals show increased demand for JPY calls.
The USD/JPY one-month 25 delta risk reversals (JPY1MRR) are being paid at 1.45 JPY calls vs. 1.13 JPY calls.
The rise in the implied volatility premium for JPY calls (buy Yen) indicates the recent drop in the USD/JPY from 107.29 to 105.80 has revived interest in Yen bullish bets (calls). It also indicates the investors see scope for a further drop in the USD/JPY pair, possibly below 105.00 (major psychological support).
JPY1MRR
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.