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 faces next resistance near 1.1930

EUR/USD continues to build on its recovery in the latter part of Wednesday’s session, with upside momentum accelerating as the pair retargets the key 1.1900 barrier amid a further loss of traction in the US Dollar. Attention now shifts squarely to the US data docket, with labour market figures and the always influential CPI releases due on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of modest losses in the US Dollar and despite 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.