JPY Futures: potential squeeze higher

CME Group’s preliminary data for JPY futures markets noted open interest dropped by just 554 contracts on Monday. In the same direction, volume shrunk for the second consecutive session this time by nearly 25.1K contracts.

USD/JPY risks a correction lower

The down move in the Japanese safe haven was on the back of declining open interest and volume, leaving the door open for a probable rebound and the resulting correction lower in USD/JPY. That said, immediately to the downside emerges the area of recent support in the mid-106.00s.