US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Sell the Bounce": Gold Rally Stalls Near $4165 as Fed Hawks Slam the Door on Rate Cuts — Targets $4000/$3600 
Goldman Sachs: US Dollar Likely to Stay Strong Despite Oil Price Retreat 
World Cup technology: from ref cams to AI analysts, cutting-edge research is changing the game 
Trump’s Iran Strategy: What Has Been Achieved After Three Months of Conflict? 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Urban studies: Doing research when every city is different 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
SpaceX Stock Gets $175 Target as Analysts See Massive Growth Ahead 
With Iran and the US signing a peace deal, where does that leave Benjamin Netanyahu? 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
EURJPY PPP and FEER valuations are the yen bear’s arch-enemies, but they apply far more to the USDJPY than to the EURJPY, given that the euro, too, is significantly undervalued on a PPP basis. The PIIE puts a FEER-consistent EURJPY rate at 121. More important perhaps than the valuations, however, is our confidence that the ECB is further along the road to policy normalization than the BOJ.
While please be noted that the bearish neutral risk reversals are still indicating bearish risks in longer tenors, while positively skewed IVs of the 1y tenor signifies the hedgers’ interests in OTM put strikes. These skews signal underlying spot FX to drop below 126 levels. While glance through above nutshell evidencing risk reversals, although these numbers have been neutral, we can understand the highest hedging sentiments for bearish risks of this pair among G10 FX space. Bearish hedging remains intact.
To substantiate this standpoint, if you observe the technical chart of this pair, the major trend has been rising higher upto 61.8% Fibonacci levels from the lows of 109.205 levels but with struggling momentum. The technical momentum indicators have been substantiating overbought pressures in this consolidation phase (refer monthly chart). For more reading, refer our technical section.
Hence, keeping the both OTC and technical factors in mind, it is advisable to initiate below relative value trades.
Sell 6M EURJPY 25D risk-reversal (buy EUR calls - sell EUR puts), delta-hedged for risk-averse traders.
Buy 3M EUR puts/JPY calls vs. sell 3M 28D EUR puts/KRW calls for directional traders.
Buy 3m EURJPY ATM -0.49 delta puts for aggressive bears on hedging grounds.
Currency Strength Index: FxWirePro's hourly EUR spot index is inching towards 49 levels (which is bullish), while hourly JPY spot index was at -47 (bearish) while articulating (at 09:33) GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit:
