GBP/JPY risk reversals hit lowest since August 2016 on put demand

GBP/JPY one-month 25 delta risk reversals (GBPJ1MRR) are currently trading at -4.275 in favor put options (bearish bets) - a level last seen in August 2016. 

More importantly, risk reversals have fallen sharply from highs near -3.00 seen on March 19, which indicates the demand for put options has spiked in the ten days, possibly due to Brexit uncertainty. 

Risk reversals is a gauge of calls to puts on the British currency. A negative number indicates implied volatility premium or demand for puts is higher than that for calls, while a positive number represents a higher demand for calls. 

GBPJ1MRR