The JPY call value has nosedived in the aftermath of the BOJ decision, risk reversals indicate. The sharp uptick in the risk reversals adds credence to USD/JPY’s move above the key hurdle. The one-month 25 delta risk reversals (JPY1MRR) have jumped to -1.00, their highest level since July 18 indicating a falling demand or the implied volatility premium for JPY calls (bullish bets). The risk reversals had hit a low of -1.5 on Monday, as investors sought downside protection (JPY calls) against long USD/JPY position on fears the BOJ might announce a hawkish policy tweak. However, the central bank refrained from raising the long-term yield target and only announced a wider target range (to 0.2 percent from 0.1 percent), thus making the ultra-easy policy more sustainable. Consequently, the USD/JPY pair rose above 111.55, confirming a long-run pennant breakout and the demand for JPY bullish bets (JPY calls) fell sharply. 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 GBP/USD back into 1.31 ahead of the US Fed’s rate call as BoE Thursday looms FX Street 5 years The JPY call value has nosedived in the aftermath of the BOJ decision, risk reversals indicate. The sharp uptick in the risk reversals adds credence to USD/JPY's move above the key hurdle. The one-month 25 delta risk reversals (JPY1MRR) have jumped to -1.00, their highest level since July 18 indicating a falling demand or the implied volatility premium for JPY calls (bullish bets). The risk reversals had hit a low of -1.5 on Monday, as investors sought downside protection (JPY calls) against long USD/JPY position on fears the BOJ might announce a hawkish policy tweak. However, the central bank… 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.
