JPY Futures: scope for extra losses

CME Group’s flash data for JPY futures markets noted open interest rose for the second consecutive session on Monday, now by almost 5.5K contracts. On the other hand, volume extended the downtrend and retreated by just 453 contracts.

USD/JPY now targets the 200-day SMA

USD/JPY is prolonged the up move on Monday and is now flirting with the key 109.00 handle. Rising open interest coupled with negative price action in the safe haven JPY appears supportive of a move higher to, initially, the key 200-day SMA at 109.04. On the flip side, the constant decrease in volume carries the potential to reduce the speed of the march north.