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