USD/JPY risk reversals have the highest level since July 26. The guage indicates the pair is likely to end the ongoing consolidation with a bullish move. One-month risk reversals on USD/JPY (JPY1MRR), a gauge of calls to puts, rose to three-month highs on Friday, indicating the investors are adding bets to position for continued strength in the US Dollar. The gauge ticked higher to -1.20, the highest level since July 26. The negative number indicates the demand or implied volatility premium for USD/JPY puts is still higher than that for USD/JPY calls. That said, the demand differential has weakened significantly over the last two months, as indicated by the rise in the risk reversals from -2.275 to -1.20. More importantly, risk reversals continue to rise despite the recent sideways trend in USD/JPY. The pair’s ascent from the Oct. 3 low of 106.48 run out of steam at highs near 108.90 on Oct. 15 and the spot has been lacking a clear directional bias ever since. Risk reversals, however, have risen from -1.47 (low on Oct. 14), which indicates the options market is expecting USD/JPY to continue moving higher. 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 Ethereum price analysis: ETH/USD creeps back inside the Bollinger band FX Street 3 years USD/JPY risk reversals have the highest level since July 26. The guage indicates the pair is likely to end the ongoing consolidation with a bullish move. One-month risk reversals on USD/JPY (JPY1MRR), a gauge of calls to puts, rose to three-month highs on Friday, indicating the investors are adding bets to position for continued strength in the US Dollar. The gauge ticked higher to -1.20, the highest level since July 26. The negative number indicates the demand or implied volatility premium for USD/JPY puts is still higher than that for USD/JPY calls. That said, the demand differential… 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.
