JPY Futures: Gains seen as temporary
Preliminary figures for JPY futures markets saw open interest shrinking by just 171 contracts on Friday according to CME Group. In the same direction, volume extended the downtrend and drop by around 1.9K contracts.
USD/JPY now eyes the 110.70 region
USD/JPY has eased a tad on Friday on the back of renewed JPY-buying. However, declining open interest and volume should leave bouts of JPY-strength limited and therefore favour the continuation of the rally in the pair to, initially, the 110.65/70 band.