JPY futures: neutral/bearish near term

Open interest in JOY futures markets dropped by more than 1.7K contracts on Monday from Friday’s final 225,176 contracts, according to CME Group. Volume, instead, rose by around 14.5K contracts.

USD/JPY corrective downside could test 112.30

USD/JPY up move yesterday was accompanied by declining open interest and rising volume, pointing to some consolidation in the near term horizon. However, further correction lower could test November’s lows in the 112.30 region.