JPY Futures: cautious, further pullbacks not ruled out

Friday’s flash data for JPY futures markets noted open interest and volume shrunk by nearly 1.5K contracts and around 17.6K contracts, respectively, adding to the previous drops.

USD/JPY seen higher, focused on risk appetite

Friday’s positive price action in USD/JPY was on the back of declining open interest and volume, which should carry the potential for a U-turn in spot in the near term. However, the US-China truce and subsequent better tone in the riskier assets appears to have removed tailwinds from JPY strength, at least in the near term.