JPY Futures: gains remain limited

CME Group’s preliminary readings for JPY futures markets noted open interest shrunk by around 3.1K contracts on Monday for the first time since November 19^th. Volume, instead, increased for the second session in a row, now by nearly 42.5K contracts.

USD/JPY still seen visiting 110.00

The correction lower in USD/JPY on Monday was fuelled by rising trade concerns, although diminishing open interest in the Japanese safe-haven should add to the view that a deeper pullback is unlikely/limited in the short-term horizon. Higher volume, however, could spark some near-term consolidation in the pair ahead of further gains.