JPY futures: rising odds for a correction lower

CME Group’s flash data for JPY futures markets noted open interest shrunk for the third session in a row on Monday, this time by nearly 5.5K contracts. In the same line and after six consecutive daily builds, volume dropped by around 41.1K contracts.

USD/JPY met support near 109.30

Rising trade concerns have lent extra oxygen to the Japanese safe haven and dragged USD/JPY well below the 110.00 handle. Yesterday’s decline in open interest and volume hints at the likeliness of a probable reversion of the recent leg lower, shifting the near term target to the 110.00 mark.