Open interest in JPY futures markets shrunk for the second consecutive session on Tuesday, this time by around 1.2K contracts according to advanced readings from CME Group. Volume, instead, extended the uptrend and went up by around 34.6K contracts.
USD/JPY: a drop below 107.90 appears unlikely
USD/JPY moved lower on the back of the pick-up in the demand for the safe haven yen following rising trade jitters. However, diminishing open interest in JPY hints at the probability that further appreciation in the yen could run out of steam in the near term, leaving the downside in spot somewhat limited around the November’s low at 107.88.
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