JPY futures: pullback likely ahead of further gains

Open interest in JPY futures markets dropped by around 2.9K contracts on Thursday from Wednesday’s final 258,250 contracts, according to flash figures from CME Group. On the flip side, volume rose significantly by nearly 36.8K contracts.

USD/JPY further correction lower on the cards

Thursday’s moderate drop in USD/JPY was accompanied by shrinking open interest while volume rose for the third day in a row. Despite extra pullbacks are not ruled out in the near term, the underlying bullish tone in spot allows for the continuation of the up trend, with potential target in the 114.70 region.