JPY Futures: room for extra losses

Open interest in JPY futures markets rose by nearly 6.6K contracts on Monday after two consecutive daily drops according to flash data from CME Group. On the other hand, volume shrunk for the second straight session, now by around 43.4K contracts.

USD/JPY now targets the 200-day SMA

The up move in USD/JPY is on the back of rising open interest in the Japanese safe haven, which could allow for the continuation of the ongoing recovery with immediate target the 109.00 handle and beyond, where sits the key 200-day SMA. The increase in volume, however, could remove some tailwinds from the upside momentum and force some consolidation.