JPY Futures: neutral/bullish near term

CME Group’s advanced figures for JPY futures markets noted open interest shrunk for the third session in a row on Thursday. On the other hand, volume clinched the second consecutive build, now by around 28.3K contracts.

USD/JPY upside halted around 108.50

USD/JPY is seen some correction lower after being rejected from recent tops in the mid-108.00s. Furthermore, the leg lower was accompanied by shrinking open interest and increasing volume. That said, while the pair might have entered into a consolidative theme in the near term, a move further south is not ruled out for the time being.