USD/JPY's drop below 105.00 hasn't boosted demand for JPY calls

• USD/JPY dipped below 105.00 on Friday.
• Risk reversals remain flatlined.

The USD/JPY pair fell below 105.00 on Friday, but the move has not boosted the demand for JPY calls (buy yen), the risk reversals indicate.

The one-month 25 delta risk reversals (JPY!MRR) are unchanged at -1.525 (being paid at 1.525 JPY calls) for the fourth straight session. The stagnant implied volatility premium for JPY calls could be an indication the investors do not see a deeper drop in the USD/JPY pair.

JPY1MRR