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One-month risk reversals on USD/JPY, a gauge of calls to puts, has dropped to -0.137, the highest level since February 22, 2021, having recently jumped to +0.133 on last Thursday.

The data provided by Reuters indicates a strengthening of demand for USD/JPY puts or bearish bets.

That said, the currency pair is trading around 108.90, up 0.36% intraday at the press time, the highest level since June 2020, poked the previous day. The pair bottomed out at 102.59 on Jan. 6.

Although USD/JPY bears area flashing warnings in the option markets, hopes of the US stimulus seem to favor the bulls off-late.

Read:  USD/JPY Price Analysis: Bears moving in from 50% mean reversion resistance