JPY Futures: Extra downside looks unlikely

CME Group’s preliminary figures noted investors trimmed their open interest positions for yet another session on Tuesday, now by nearly 5.3K contracts. In the same direction, volume shrunk by around 29.1K contracts, prolonging the inconclusive trend.

USD/JPY could re-visit the 108.50 region

Tuesday’s uptick in USD/JPY was on the back of declining open interest and volume in the safe haven yen, showing that the selling bias could be nearly over. That said, the pair could resume the downside and attempt a move to the 200-day SMA in the 108.50 region in the short-term horizon.