JPY Futures: Room for some near term correction lower

Open interest in JPY futures markets shrunk by just 378 contracts on Friday, prolonging the erratic performance, according to preliminary figures from CME Group. In the same line, volume dropped by almost 26.9K contracts.

USD/JPY well supported near 107.00

The recent decline in USD/JPY was on the back of declining open interest and volume, which could spark a squeeze higher in the short-term horizon. Against this backdrop, spot is likely to meet initial resistance above the 108.00 handle, where lies the 10-day SMA.