USDJPY - stay alert - for poss. reversal
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Analysis: Investors bet on initial success for Japan on yen
"It's incredible how unfazed investors are about the downside on dollar/yen," said Simon Smollett, options analysts at Credit Agricole.
"It tells us Japanese corporates are not worried (about the possibility of dollar/yen falling), nor are the market makers in dollar/yen options, and even the hedge funds don't see any edge there."
The one-month 25-delta risk reversal shows a premium of 0.9 to buy yen calls over puts, a fall from 1.5 prior to intervention. This tallies with positioning data, which shows speculators have slashed bets on yen gains.
Implied volatility -- a measure of financial market risk and a key factor in calculating option prices -- has also come down, with one-month dollar/yen volatility trading around 11 percent compared with 13 percent before intervention.
http://us.mobile.reuters.com/article/idUSTRE6943V720101005?ca=rdt
"It's incredible how unfazed investors are about the downside on dollar/yen," said Simon Smollett, options analysts at Credit Agricole.
"It tells us Japanese corporates are not worried (about the possibility of dollar/yen falling), nor are the market makers in dollar/yen options, and even the hedge funds don't see any edge there."
The one-month 25-delta risk reversal shows a premium of 0.9 to buy yen calls over puts, a fall from 1.5 prior to intervention. This tallies with positioning data, which shows speculators have slashed bets on yen gains.
Implied volatility -- a measure of financial market risk and a key factor in calculating option prices -- has also come down, with one-month dollar/yen volatility trading around 11 percent compared with 13 percent before intervention.
http://us.mobile.reuters.com/article/idUSTRE6943V720101005?ca=rdt
C'MON BOJ take us to 88-90 Monthly 20 SMA 
FXstreet.com (Barcelona) - Asian investors injected large inflows into Japanese crosses to the extreme that it may take no much longer to rattle the nerves from BoJ decision-makers again. As a matter of fact, IMF and G7 weekend meetings showed no censure measures on Japan's recent unilateral intervention in FX market, suggesting the odds for a second round may be higher now.
Read more: http://community.nasdaq.com/news/20...on-the-alert.aspx?storyid=39792#ixzz120YgY1Jn
FXstreet.com (Barcelona) - Asian investors injected large inflows into Japanese crosses to the extreme that it may take no much longer to rattle the nerves from BoJ decision-makers again. As a matter of fact, IMF and G7 weekend meetings showed no censure measures on Japan's recent unilateral intervention in FX market, suggesting the odds for a second round may be higher now.
Read more: http://community.nasdaq.com/news/20...on-the-alert.aspx?storyid=39792#ixzz120YgY1Jn
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