USD/JPY risk reversals turn lower on put demand

One-month risk reversals on USD/JPY, a gauge of calls to puts, has dropped to -1.55, having risen from -1.625 to -1.375 in the two weeks to Oct. 15, according to data source Reuters. 

The turn lower indicates renewed demand for put options or bearish bets. In other words, investors are again adding bets to position for a decline in USD/JPY. 

The currency pair is currently trading at 105.56, representing a 0.12% gain on the day, having defended the psychological level of 104.00 last month. Since March, the bears have repeatedly failed to establish a foothold in the range of 104.60-104.00.