💹Front-End USD/JPY Riskies Turn Bullish For First Time Since 2022: Cable FX Macro

• USD/JPY 1 week risk reversals breached above 0.0 on Thursday session, this has not been seen since 2022. Demand for protection in the case of yen strength vs the dollar has been trimmed across tenors, the 1m reads at -41bps vs -140bps at the beginning of the month

• Options market is following the breach of 160.0, dollar-yen marked a fresh YTD high on Wednesday. Implied volatility is relatively steady, as the recent rally has not been met with bids. The fact that traders do not expect wide swings after the recent highs could point to further gains, in other words, the MoF is not expected to intervene