USD/JPY risk reversals dropped to one-month lows today, indicating a rising demand for JPY puts. BOJ speculation and the fears of a deeper drop in the USD/JPY may have forced investors to buy cheap out-of-the-money JPY calls (buy JPY). The USD/JPY one-month 25 delta risk reversals (JPY 1MRR) fell to -1.5 – the lowest level since June 26, indicating a rising implied volatility premium or rising demand for JPY call options (bullish bets). About two weeks ago, the risk reversals gauge stood at -0.7. Interestingly, the sharp decline from -0.7 to -1.5, representing an increased demand for JPY calls, has coincided with a speculation that the Bank of Japan (BOJ) would tweak its policy to make it more sustainable. So, an argument can be made that investors have likely bought hedges (JPY calls) on fears the BOJ might deliver a hawkish policy tweak on July 31, sending the USD/JPY well below the 110.00 mark. JPY1MRR FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US picks up activity at North Korean ICBM facility – Reuters FX Street 5 years USD/JPY risk reversals dropped to one-month lows today, indicating a rising demand for JPY puts. BOJ speculation and the fears of a deeper drop in the USD/JPY may have forced investors to buy cheap out-of-the-money JPY calls (buy JPY). The USD/JPY one-month 25 delta risk reversals (JPY 1MRR) fell to -1.5 - the lowest level since June 26, indicating a rising implied volatility premium or rising demand for JPY call options (bullish bets). About two weeks ago, the risk reversals gauge stood at -0.7. Interestingly, the sharp decline from -0.7 to -1.5, representing an increased demand for JPY calls, has… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
