JPY futures: still scope for further decline

In light of preliminary figures for JPY futures markets from CME Group, open interest rose for the third consecutive session, this time by nearly 7K contracts. Volume followed suit, rising for another day around 19.8K contracts.

USD/JPY targets 112.00 and above

USD/JPY managed to close above the key 112.00 handle on Wednesday, although it is seeing some weakness so far today. However, rising open interest and volume in JPY should keep the offered stance around the safe haven unchanged for the time being, thus propping up an extension of the leg higher in spot.