Open interest in JPY futures markets shrunk by just 897 contracts on Wednesday according to preliminary data from CME Group. Volume followed suit and went down by more than 36K contracts.
USD/JPY could attempt a test of the mid-106.00s
The weekly up move in USD/JPY looks firm for the time being. However, the recent negative price action in JPY coupled with diminishing open interest and volume could favour a rebound in the near term, forcing spot to recede to recent lows in the 106.50 region.