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 19th. 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.