The current spot FX is trading at 132.740, our earlier targets achieved at 133.372, for now we expect dips extending up to 131.025 levels in near terms.

It is understood that bearish momentum is bolstering as we saw that from delta risk reversal table. Hence, aggressive bears can initiate strategy using ATM puts adding to any shorts ITM puts.

Please observe in the above nutshell how delta risk reversal numbers are inching higher into negative values gradually in a long run (flashing at negative 1.65 for 1 year expiries). And also 1W at the money 49.6% delta puts are trading 17.75% higher than NPV.

The broader the strike difference between short and long puts, the fewer puts you need to sell to cover the price of the long puts.

But at the same time, the coverage of long-to-short is going to be more difficult in the event of assignment.

So, the recommendation for aggressive bears is to add an extra long on put with 1m expiry to the existing debit put spreads and fresh backspreads can built in capitalizing on overpriced ATM puts on short side with 1w expiries.

Since the option you sell will always be lower on the skew curve it means you are getting a better deal on what you are selling compared to what you are buying.

It makes this strategy a good one if the skew is running a little hot but EURJPY hasn't rolled over that much.

However, on a long term hedging perspective, debit put spreads are advocated as the selling indications are piling up on weekly graph. So buying In-The-Money Puts and to reduce the cost of hedging by financing this long position, selling an Out-Of-The-Money put option is recommended.