The central banks (BoJ, BoA and Fed) remained firm on their monetary policies that utters again unchanged interest rates, this is revolving into realized vols wiper and liquidity declines seasonally into year-end.

As a result, you can observe the same into ATM volatility nutshell, EURJPY to have perceived reducing IV of ATM contracts amongst the G7 pool. The scenario wasn't the same just a week ago when it was on the verge of more easing likelihood from central banks.

Trade tips:

We recommend EUR shorts vs. PLN outright and vs. RUB via put spreads.

We hold UW EM FX, as we still see distinctive risks dominating on a higher likelihood of DM stimuli (ECB and BoJ), PBoC easing and USD/CNY stability through year-end.

In recent updates on delta risk reversal of USDJPY ATM contracts, it is understood that the ATM calls have been on high demand (this is just the resultant sentiments from recent rallies) and looks overpriced which divulges the positive market sentiments for USD/JPY pair.

Buy USD/JPY 1.5% ITM 0.5 delta call with longer expiry (let's say 1m tenor). Sell two lots of OTM strike calls (124.275). Thereby, we've formulated the strategy so as to suit the delta risk reversal.