USD/JPY Futures: Bearish with caution
CME Group’s advanced figures for JPY futures markets noted open interest shrunk by just 410 contracts on Friday following five consecutive daily builds. On the other hand, volume partially offset the previous drop and rose by almost 30.9K contracts.
USD/JPY still targets the 110.00 area and above
USD/JPY negative price action on Friday was in tandem with a reduction – albeit marginal - in open interest in the Japanese safe haven. That said, while further upside in the spot remains on the cards, the increase in volume could slow the pace of the advance and/or prompt some consolidation in the very near-term.