USD/JPY at 5.5 week high, show drop in JPY calls value

• USD/JPY risk reversals have retraced major chunk of JPY bullish bias. 
• Add credence to signs of a turnaround in the USD/JPY pair. 

The USD/JPY one-month 25 delta risk reversals (JPY1MRR) rose to -1.175 today - the highest level since Feb. 2. 

The other way of saying is - the risk reversals are being paid at 1.175 JPY calls vs. 1.825 JPY calls on Mar. 2 and 2.425 JPY calls on Feb. 12. The drop in the implied volatility of JPY calls (bullish bets) from 2.425 to 1.175 indicates a fall in demand for JPY calls and adds credence to signs of a short-term bullish reversal in USD/JPY. 

JPY1MRR