USD/JPY risk reversals: JPY calls gain value amid trade war fears

• The USD/JPY risk reversals show implied volatility premium for JPY calls is rising. 
• Investors are likely seeking protection against downside in USD/JPY. 

The USD/JPY one-month 25 delta risk reversals (JPY1MRR) fell to -1.35 - the highest level since June 8, representing a rise in demand for JPY calls or rise in implied volatility premium for JPY calls. 

It appears as though investors are seeking protection against an increased possibility of a deeper drop in USD/JPY.

Moreover, the anti-risk JPY could rise sharply on US-China tariffs slugfest. 

JPY1MRR