REPEAT (Originally Ran At 08:30 05/23....>

DOLLAR-YEN: REPEAT (Originally Ran At 08:30 05/23 BST): POV: Options Could Be

Pointing To A Downtick In USDJPY

- Both 1-Month and 3-Month 25 delta USDJPY risk reversals have posted tops (for

the time being) around the January highs. Back in January spot USDJPY peaked

above 113.00, before the pair turned tail and traded below 105.00 before the end

of March.

- From a fundamental perspective not much has changed within the Japanese

economy and uncertainty stemming from the US-China trade relations, issues

surrounding North Korea and worry over the EM space all add to the case for a

degree of JPY demand.

- The major risk this view includes is a more hawkish rhetoric out of the

Fed/higher US Tsy yields.