JPY Futures: Extra appreciation looks unlikely
Open interest in JPY futures markets shrunk for the second consecutive session on Friday, now by around 3.6K contracts in light of flash readings from CME Group. In the same line, volume went down by almost 60.5K contracts, reversing the previous build.
USD/JPY could re-test 108.30
Friday’s pullback in USD/JPY was on the back of declining open interest and volume, hinting at the likeliness that the continuation of the leg lower could run out of steam in the short term. That said, occasional bullish attempts could target the 200-day SMA, today at 108.30.