Bank of America Posts Strong Q4 2024 Results, Shares Rise 
2025 Market Outlook: Key January Events to Watch 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Goldman Predicts 50% Odds of 10% U.S. Tariff on Copper by Q1 Close 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Stock Futures Dip as Investors Await Key Payrolls Data 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
Wall Street Analysts Weigh in on Latest NFP Data 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
Mexico's Undervalued Equity Market Offers Long-Term Investment Potential 
China's Refining Industry Faces Major Shakeup Amid Challenges 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
This is just a review of the short put ladder option strategy that was advocated on exactly a week ago (14th June).
Before we begin please follow below weblink for our previous option recommendation on this pair:
The updates on OTC EURJPY are as follows:
The current IVs of ATM contracts are at 16.55% and likely to spike higher levels above 27% in 1w and 2w tenors ahead of UK referendum this week, it is likely to perceive at 16% thereafter during 1m tenors.
While delta risks reversals have bearish-neutral right from 1w to 1y tenors that mean overall hedging sentiments favor bearish risks even though there are positive flashes. So, one can expect abrupt upswings in between the long lasting downtrend.
Eyeing cautiously on any abrupt upswings in EURJPY and spiking IVs would be conducive for option writers, shorts have been favored by acknowledging the implied volatility spiking when positive flashes keep popping up (see IV nutshell on every positive flashes of risk reversals).
Thus, please be noted that the shorts of 1w expiries are performing better so far.
2 lots of longs of 2m tenors would take care of downside risks signaled by the negative risk reversals of EURJPY in a long run during significant Brexit risky event.
As the delta risk reversals have again shown in bearish interests as the progressive increase in negative numbers signify the traction for hedging sentiments for downside risks in both short and long term, it encompasses many risky events in both short and long run that could pose potential headwinds for sides of this pair.
As stated in our earlier call, the risky event (Brexit event) could hamper euro’s prospects. Given concerns over limits of the policy arsenal at the BoJ and rising euro-centric risks, we recommend initiating short EURJPY positions for long term hedging.
For now, stay firm with longs in ATM puts with 2m tenors as EURJPY is forecasted to retest 3 and a half year lows of 115.497 levels.
