JPY Futures: upside could take a breather

CME Group’s advanced figures for JPY futures markets noted open interest shrunk by nearly 1.3K contracts on Monday, reversing two consecutive daily builds. In the same direction, volume dropped by more than 46K contracts.

USD/JPY looks contained near 107.80 so far

The sharp decline in USD/JPY was on the back of increasing demand for the safe haven JPY, in turn supported by higher open interest, while the performance in volume remains far from clear. That said, yesterday’s drop in both volume and open interest supports the view that the 107.80 region should hold the downside for the time being.