CME Group’s flash figures for JPY futures markets saw investors added around 6.4K contracts on Friday to their open interest positions, reaching the second build in a row. On the other hand, volume dropped by 5K contracts after three consecutive builds.
USD/JPY now looks to a test of 105.00
Increasing trade fears have prompted a rally in the safe haven JPY, sending USD/JPY to the sub-106.00 area for the first time since January. Rising open interest in JPY could favour the continuation of the leg lower in spot in the short-term horizon, although the down tick in volume could delay the pace of the decline.