USD/JPY: Risk reversals see a slight improvement

The 1-month 25-delta risk reversal picked up slightly to -1.325 on Wednesday from Tuesday’s print of -1.35. 

That goes well with the rebound in the USD/JPY spot from the 200-DMA support 111.78, although the bigger picture still remains in favor of the Yen, given the risk reversal is still way below the recent high of -0.8. 

Watch out - A sustained move in the 25 delta risk reversal above -1 would signal the investors are once again betting on the upside in the USD/JPY. 

Source: Reuters