Japanese Yen futures: OI and Volumes drop as Yen struggles to break higher

The demand for the Japanese Yen last week wasn’t strong enough to push the USD/JPY pair below 111.00 levels even though the treasury yield curve flattened and the inflation expectations slid to 8-month low of 1.61%.

Friday’s Doji candle on the USD/JPY pair suggests indecision in the markets. The lackluster sideways action of the last week has led to a drop in the JPY futures volume on the CME. The Open Interest has dropped as well, as traders await a convincing breakout on either side (below 111.00 or above 112.00).

The preliminary figures by the CME show the Open Interest dropped by 806 contracts on Friday. The Open Interest in the September contract (most active contract) fell by 760. Volumes topped out on June 14 and the Friday’s count of 77,528 was the lowest since May 29.

A jump in the OI and volumes following the range breakout would signal the bull/bear momentum is gathering pace.