USD/JPY - Risk reversals hit 8-week low

• Spot week risk reversals hit 8-week low
• Spot week ATM Vols rise to one-month high.

USD/JPY spot week 25 delta risk reversal gauge dropped to an eight-week low of -1.275, indicating the growing demand for JPY calls (bullish bets no JPY).

Also, the spot week ATM Vols rose to a one-month high of 6.753 yesterday.

A combination higher premiums for JPY calls and rising vols indicate the spot could soon drop below 110.15 (61.8% Fib R of Sep-Nov rally).