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Options Switch to Upside JPY Bias as Spot Drifts Off Multiyear High

JPY
  • Mirroring the ebb lower in the spot rate, the bias among USDJPY options markets has shifted to the downside Wednesday, with the nominal put/call ratio rising to around 1.50 according to DTCC-tracked trades.
  • Strikes layered between 104.00, 104.50 and 105.00 have garnered the most interest, with over $1bln notional wagered against those levels in trades consistent with a series of put spreads, with the Mar24 expiry capturing the next two rate decisions from both the Fed as well as the BoJ.

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