In light of preliminary readings for JPY futures markets from CME Group, open interest reversed five consecutive daily pullbacks and rose sharply by 100.3K contracts on Monday. On the other hand, volume shrunk by around 103.4K contracts, reversing two builds in a row.
USD/JPY could test the mid-106.00s
USD/JPY dropped and rebound from fresh YTD lows near 107.30 at the beginning of the week. The move was in tandem with increasing open interest around the Japanese yen, which should allow for further weakness in the pair. However, the down tick in volume could remove some tailwinds from the downtrend in the currency and spark some consolidation instead.
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