JPY Futures: squeeze higher is not ruled out in the short-term

Open interest in JPY futures markets shrunk by just 695 contracts on Tuesday, reversing four consecutive daily builds, according to preliminary data from CME Group. Volume, in the same direction, went down for the third straight session, this time by almost 11K contracts.

USD/JPY faces strong resistance above 108.00

Declining open interest and volume amidst negative price action in the Japanese safe haven is threatening the continuation of the recovery in USD/JPY, which has met moderate resistance already in Tuesday’s tops near 108.40.