The USD/JPY supports negative options market signals

Early on Friday in Asia, USD/JPY accepts the offer to retest an intraday low at 134.20 as bears maintain control.

In order to entice USD/JPY sellers, the Yen pair follows negative indications from the options market. However, the one-month risk reversal (RR), which measures how many call options there are compared to how many put options, falls for the third day in a row to -0.305.

As a result, the one-month RR publishes the most negative reading since late December 2022, dropping to -0.585 on a weekly basis, favoring USD/JPY sellers.

Therefore, even if the USD/JPY pair suffers amid off-day trading in Japan and ahead of the US Nonfarm Payrolls, the key options market participants are pessimistic about the pair's values.

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