Options traders are still optimistic about the long-term outlook for the yen and are not affected by short-term fluctuations in the spot market. The yen took back some of this week's gains on Thursday, recording the biggest decline in nearly three weeks; during the early London session, the dollar fell again against the yen, falling 0.2% to 154.05. The one-year risk reversal indicator was not bothered by short-term fluctuations in spot prices. The yen's bullish premium extended to 54 basis points on Friday, the highest level since the close in February. Earlier this month, the indicator was just 10 basis points. Affected by the rise in the yen's spot price, the short-term side of the currency's volatility bias index has eased somewhat compared to a week ago; demand for forward term options has risen, reflecting a shift in market sentiment about the yen's trend next year.

Options traders are still optimistic about the long-term outlook for the yen and are not affected by short-term fluctuations in the spot market. The yen took back some of this week's gains on Thursday, recording the biggest decline in nearly three weeks; during the early London session, the dollar fell again against the yen, falling 0.2% to 154.05. The one-year risk reversal indicator was not bothered by short-term fluctuations in spot prices. The yen's bullish premium extended to 54 basis points on Friday, the highest level since the close in February. Earlier this month, the indicator was just 10 basis points. Affected by the rise in the yen's spot price, the short-term side of the currency's volatility bias index has eased somewhat compared to a week ago; demand for forward term options has risen, reflecting a shift in market sentiment about the yen's trend next year.