JPY Futures: further pullbacks on the cards

Pablo Piovano FXStreet

Open interest in JPY futures markets went up by nearly 10.9K contracts on Wednesday, reversing four consecutive drops, according to flash data from CME Group. Volume, too, increased by around 45.3K contracts, reaching the second straight build.

USD/JPY now targets 109.31, August peak

The renewed upbeat tone in the riskier assets has been fuelling the selling bias in the Japanese safe haven amidst increasing volume and open interest in the futures markets. This scenario keeps pointing to the continuation of the upside bias in USD/JPY for the time being, with the 109.30 region emerging as the next target.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.