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Options markets continue to contort in...>

DOLLAR-YEN
DOLLAR-YEN: Options markets continue to contort in favour of a weakening JPY (or
less cautious of a stronger JPY) with both EUR/JPY and USD/JPY 1m risk reversals
continuing the ascension seen since the equity/vol product meltdown in early
February. USD/JPY 1m risk reversals are posting their 3rd consecutive daily gain
and have only fallen once in the past 12 sessions. The same pattern is seen in
EUR/JPY. Meanwhile, EUR/JPY has fallen 2.8% and USD/JPY trades lower by 2.3%.
The moves in options markets could indicate the rally in JPY is running out of
steam.

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