USD/JPY gains 25 pips as S&P 500 futures and treasury yields rise

• USD/JPY seems to have picked up a bid in response to the uptick in the Treasury yields. 
• The Yen is losing ground amid gains in the S&P 500 futures.  

USD/JPY has gained 25 pips in the last couple of hours, possibly tracking the rise in the futures on the S&P 500 and the US treasury yields.

As of writing, the pair is trading at 106.19, having hit a high of 106.27 a few minutes before press time. The pair traded at 106.02 in early Asia.

Treasury yields rise

The yield on the US 10-year treasury note is currently trading at 1.537%, up 7 basis points from the record low of 1.474% hit on Thursday.

Meanwhile, the two-year yield is trading at 1.512% at press time, having hit a record low of 1.46% on Thursday.

The recovery in Treasury yields seems to have put a bid under the USD.

Meanwhile, the anti-risk Japanese Yen is on the defensive seemingly due to the 10-year Japanese government bond yield's drop to three-year lows and the 0.57% rise in the S&P 500 futures.

Looking forward, the yields may continue to rise, keeping the USD/JPY pair better bid. After all, an above-forecast US data released on Thursday assured investors that Americans are spending enough to keep the economy from falling into a recession.

Technical levels