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5 Aug 2019
JPY Futures: extra upside could lose momentum
CME Group’s flash figures for JPY futures markets saw investors added around 6.4K contracts on Friday to their open interest positions, reaching the second build in a row. On the other hand, volume dropped by 5K contracts after three consecutive builds.
USD/JPY now looks to a test of 105.00
Increasing trade fears have prompted a rally in the safe haven JPY, sending USD/JPY to the sub-106.00 area for the first time since January. Rising open interest in JPY could favour the continuation of the leg lower in spot in the short-term horizon, although the down tick in volume could delay the pace of the decline.