Treasuries briefly pared its earlier advance in a flash-in-the pan move as US futures spiked higher at the same time. In turn, that has pushed yen pairs lower across the board with USD/JPY moving up by nearly 90 pips from 105.90 to a high of 106.78.
The move is hitting just as we're beginning the European session so liquidity may still be a bit light but I reckon this is the market trying to figure out if yesterday's move was overdone.
As mentioned earlier, the push and pull between equities and bonds will be a key factor for markets today in determining that.
The move in USD/JPY is stalling at the 38.2 retracement level and the pair has now fallen back to 106.30. But buyers are now in near-term control and if they can keep a move above 106.00, we could see price hold higher ahead of US data later on.