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CME Group’s flash data for JPY futures markets noted open interest dropped by more than 51K contracts on Wednesday, reversing two consecutive daily builds. On the opposite direction, volume increased for the second day in a row, this time by around 42.7K contracts.

USD/JPY scope for a rebound in the near term

USD/JPY is prolonging the leg lower for yet another session, coming down to test the mid-110.00s in the wake of the FOMC meeting. Shrinking open interest allows for a probable correction higher, although the continuation of the uptrend in volume could still sustain extra pullbacks.