JPY Futures: scope for extra losses

Open interest in JPY futures markets rose by more than 700 contracts on Tuesday, reaching the second build in a row according to flash data from CME Group. In the same direction, volume went uo by around 74K contracts following two consecutive pullbacks.

USD/JPY could extend the bounce to 108.00 and above

USD/JPY bounced off 5-month lows on Tuesday amidst rising open interest and volume in the Japanese currency. That said, further upside in spot is expected in the short-term horizon with the next target at the 10-day SMA at 107.84.