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USD/JPY risk reversals: JPY call bias strongest since March 23

  • Risk reversals drop to lowest since March 23, indicate rising demand for JPY calls.
  • Investors expecting a deeper drop in USD/JPY pair.

The USD/JPY one month 25 delta risk reversals (JPY1MRR) fell to -1.5 on Wednesday - the lowest level since March 23 vs -0.65 on April 18.

The decline from -0.65 to -1.5 represents rising implied volatility premium or rising demand for JPY calls and indicates the investors are likely expecting a deeper drop in the USD/JPY pair.

As of writing, the USD/JPY pair is trading at 108.60, having hit a low of 108.11 yesterday.

JPY1MRR

NZD/USD technical analysis

NZD/USD, 1 Hour Spot rate: 0.6910 Relative change: 0.20% Trend: Turning Bearish Support 1: 0.6890, multiple rejections from this point. Support
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AUD/NZD backing down as the Aussie continues to drift against the Kiwi

The AUD/NZD is trading back into 1.0850 in early Asia trading as the Aussie falls against its closest neighbor. The Aussie's downturn against the Kiw
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