JPY Futures: room for a correction lower near term

Open interest in JPY futures markets shrunk by just 934 contracts on Monday m reversing at the same time two consecutive builds, according to preliminary figures from CME Group. In the same line, volume shrunk by more than 12K contracts, reaching the second drop in a row.

USD/JPY looks supported near 107.30

USD/JPY is reversing three consecutive sessions with losses on Tuesday. The recent appreciation of the Japanese safe haven was amidst shrinking open interest and volume, removing some tailwinds from the pair’s decline and exposing a potential rebound to, initially, the 100-day SMA at 107.88.