EUR/JPY risk reversals - bearish bias strengthens

• Risk reversals show a rise in demand for Puts.
• Adds credence to bearish EUR/JPY price action.

The one-month 25 delta risk reversal fell to -0.75; the lowest level since Nov. 27.

• It indicates increased demand for bearish bets on EUR (put options).
• Also, it validates the argument that the pair has topped out 136.64 and the short-term trend has turned bearish.

As of writing, EUR/JPY is trading at 133.31. A break below 133.00 (support of the trendline sloping upwards from Nov. 23 low and Dec. 15 low) could yield further losses towards 132.05 (Dec. 15 low).