USD/JPY risk reversals hit 6-week low on put demand

USD/JPY one-month 25 delta risk reversals are currently trading at -1.325, the lowest level reading since Jan. 31. 

The negative number indicates that demand or implied volatility premium for puts is the highest in six weeks. 

Put simply, investors are adding bets to position for a deeper drop in USD/JPY, which is currently trading at 111.30. 

Risk reversals