USD/JPY surrenders gains despite the uptick in US equity index futures
- USD/JPY erases gains despite the 0.26% gain in the S&P 500 futures.
- The pair has come under pressure, possibly due to the minor drop in the Treasury yields.
The bid tone around the Japanese Yen strengthened, pushing the USD/JPY pair lower from the session high of 107.69 to 107.52 despite the rise in the US equity index futures.
As of writing, the futures on the S&P 500 are reporting 0.26% gains. Even so, the anti-risk Yen has picked up a bid, possibly due to the decline in the US yields.
The US 10-year Treasury yield is currently trading at 1.71%, representing two basis points drop on the day. Meanwhile, the two-year yield, which is more sensitive to the short-term interest rate expectations, is down one basis point at 1.68%.
Focus on Kuroda's speech
Bank of Japan (BOJ) Governor Kuroda is scheduled to speak at 05:30 GMT. The central bank head is likely to reiterate the willingness to ramp up the already massive stimulus program if the economy is derailed from the track to the 2% inflation target.
The Yen, however, may not weaken on governor Kuroda's dovish talk, as there is a growing belief that the central bank has little room to provide more stimulus and any additional measure is unlikely to be effective.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
