CME Group’s preliminary figures for open interest in JPY futures show a jump in Open Interest (OI) following a rejection at a key technical level and a double top breakdown (bearish reversal) pattern.
JPY/USD pair failed to hold above the key technical hurdle of 0.009163 (June 7 high) last Thursday. It was followed by a double top breakdown on Friday.
Interestingly, Thursday’s failure at the key technical hurdle was accompanied by a drop in the OI by 7690 contracts, suggesting the long positions may have been squared off following the rejection at the key level.
Friday’s preliminary data show the OI rose by 4954 contracts to 221,838, which indicates build up of fresh JPY shorts following the confirmation of the double top reversal pattern. JPY/USD looks set to extend losses to 0.008889 (downside as per the measured height method - double top breakdown), although caution is advised given the futures volume has dropped for three straight trading days.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.