JPY Futures: extra downside on the cards

Open interest in JPY futures markets rose for the second session in a row at the beginning of the week, this time by around 1.2K contracts, according to flash data from CME Group. On the other hand, volume prolonged the choppy performance and shrunk by around 54.8K contracts.

USD/JPY next target at 108.50

USD/JPY is extending the march north backed by the better tone in the riskier assets. The move is accompanied by rising open interest, which should add to the ongoing upside momentum and push spot to the key resistance area in the mid-108.00s in the short-term horizon. The moderate contraction in volume, however, could slow down the pace of the expected uptick.