JPY Futures: room for further appreciation

CME Group’s flash data for JPY futures markets rose by nearly 1.4K contracts on Thursday after three consecutive daily drops. Volume, instead, reversed four builds in a row and shrunk by almost 59.8K contracts.

USD/JPY could still head towards 108.00

Thursday’s correction lower in USD/JPY was on the back of rising open interest in the safe haven JPY, which remains supportive of a deeper retracement that could test the 108.00 neighbourhood if US-China trade tensions continue to swell. The increase in volume, however, could also prompt some caution among traders and favour a consolidative phase.