USD/JPY picks up bids to refresh intraday high around 137.60 during early Wednesday in Europe. In doing so, the Yen pair portrays the market’s risk-on mood amid a light calendar.

However, the options market signals are in contrast with the USD/JPY price run-up. That said, the one-month risk reversal (RR) for the Yen pair, the ratio between call and put premiums, braces for the biggest weekly print in three by flashing -0.325 at the latest. In doing so, the weekly RR drops for the third consecutive week. Further, the daily RR snaps a two-day uptrend by printing the -0.435 figure at the latest.

It’s worth noting that China’s announcement of the new Covid policy appeared to have triggered the latest risk-on mood.

Also favoring the USD/JPY could be the comments from various policymakers at the Bank of Japan (BOJ). Recently, BOJ Board Member Toyoaki Nakamura said that it is ‘premature to tweak monetary policy now as service prices remain low.

Also read: USD/JPY Price Analysis: Retreats from monthly resistance around 137.00