USD/JPY Risk Reversals: Sellers have run out of steam

Monday’s long legged Doji candle on the USD/JPY daily chart indicates indecision in the markets and has opened doors for a technical correction. The spot did rise to a high of 111.34 in early Asia before deflating to 111.10 levels. 

The one-month 25 delta risk reversal adds credence to the Doji candle and signals the sellers have run out of steam. 

The risk reversal is flat lined around -1.35 for a week now. During the same time period, the Dollar-Yen pair fell from 112.60 to 110.61 levels.