USD/JPY justifies downbeat options market signals to retreat towards 134.00

USD/JPY takes the offers to refresh intraday low near 134.20 during early Friday in Asia as bears keep the reins.

In doing so, the Yen pair traces bearish signals from the options market to lure USD/JPY sellers. That said, the one-month risk reversal (RR), the gauge of call options versus the put options, drops for the third consecutive day, to -0.305.

That said, the one-month RR drops to -0.585 on weekly basis, printing the most bearish count since late December 2022, which in turn favor the USD/JPY sellers.

Hence, the major options market players are bearish on the USD/JPY prices even if the pair struggles amid off in Japan and ahead of the US Nonfarm Payrolls.

Also read: US April Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises