USD/JPY: Bears headed to 109.00, as risk-off extends into Asia

• Safe-haven Yen boosted amid risk-off, as Asian equities tumble in sync with S&P 500 futures.
• Japan’s Cabinet Office: Govt downgrades view on exports to showing `weak tone'
• Technical set up points to further downside bias, as eyes remain on US-China trade talks and Fed.

The USD/JPY pair stalled its overnight recovery mode near 109.40 levels and turned lower once again in early Asia, tracking the negative sentiment on the Asian equities that is fed by the Wall Street decline amid softer earnings reports, US-China trade worries and global growth concerns,

The risk-off tones offered a fresh lift to the JPY bulls, knocking-off the USD/JPY pair back towards the weekly troughs of 109.14 but the sentiment around the Japanese currency was somewhat dented after the Japanese government downgraded its view on exports this month for the first time in three months. At the press time, the spot keeps its range near the weekly lows, with the bears now targeting the 109 handle. Meanwhile, the US dollar also remains broadly subdued, offering little help to the major. The USD traders turn on the side lines ahead of the Fed’s two-day policy meeting and trade talks between China and the US.

Calendar-wise, the US CB consumer confidence will offer some trading incentives to the NA traders among other minority reports while the Japanese trade figures will be also closely watched later on Tuesday.

USD/JPY Technical Levels