JPY futures: potential correction lower lies ahead

CME Group’s flash data for JPY futures markets saw open interest rising by more than 2.8K contracts on Tuesday from Monday’s final 249,557 contracts. In addition, and after two consecutive drops, volume rose by around 16K contracts.

USD/JPY still targets 114.74 medium term

Yesterday’s correction lower in USD/JPY was in tandem with rising open interest and volume, hinting at the likeliness that a probable correction lower is in the offing. This view is also reinforced by spot navigating near/at overbought levels, according to the RSI.