JPY Futures: Bullish with caution

CME Group’s advanced figures for JPY futures markets showed open interest shrunk by just 505 contracts on Thursday, partially reversing the previous drop. Volume, instead, advanced for the second session in a row, this time by nearly 31.2K contracts.

USD/JPY could still return to the area above 110.00

USD/JPY has returned to sub-110.00 levels on the back of rising fears on the COVID-19 in past hours. Shrinking open interest coupled with positive performance in the Japanese safe haven warns against the extension of any correction lower, although the uptick in volume suggests some consolidation could be in the pipeline.