USD/JPY risk reversals hit 11-week high

Omkar Godbole FXStreet Contributor

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

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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