Most Americans Oppose Election Betting on Prediction Markets, Poll Finds 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Ethereum Foundation-Linked Wallets Move $11.13M in ETH to Kraken 
Ripple Mints 19.6 Million RLUSD Amid Banking Expansion 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Cardano Price Drops 15% as Whales Sell 110 Million ADA 
XRP Ledger Foundation Confirms 100B Supply Safe After Security Fix 
Zcash Price Drops 30% as ZEC Tests Critical $1,120 Support 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Add as a preferred source on Google
EURJPY IVs of 1w tenors have reduced to below 9.5% after BOJ’s shift in its monetary policy stance, while risk reversals still indicate the bearish hedging sentiments in the FX OTC markets.
From these risk reversal numbers, the hedging framework can individually be tailored, structured to mitigate the risk associated with the FX exposures. You can define:
The risk reversal allows for a customized hedging solution, tailored to your risk and hedging profile. Risk reversals are OTC derivative instruments and the notional amount does not need to be tied up throughout the full tenor of the trade.
Moreover, the IVs of 1m tenors have been positively skewed on OTM put strikes that signify the sentiments of hedging for the bearish pressures in this pair. On the other hand, the standard deviation of current ATM puts are at 0.96. We see IVs have fallen in a range that is in sync with standard deviation, for an instance, synthesizing IV skews (with spot rates) at strikes 112.50 are 0.22%, even if calculate forward rates factoring this skewness it remains well within standard deviation.
Thus, we urge you to be mindful as to how to factor it into your trading strategy you are unlikely to win long term.
Standard deviation is logical, easy to comprehend and would help you time entries better and define targets for trades, as well as spotting important trend reversals and indicates the volatility of price in any currency. In essence, standard deviation measures how widely values are dispersed from the mean or average.
Fundamentally, amid the apprehensions on perimeters of the policy arsenal at the ECB and rising euro-centric risks, we recommend maintaining shorts positions in EURJPY for medium term hedging but by capitalizing on every short-term upswing, preferably via options.
