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The Japanese Cabinet Office downgraded its view on the economic outlook to ‘worsening’ after the country’s key economic indicators fell on Monday, as cited by Reuters.

The last time the government gave a “worsening” assessment was for April data. The Cabinet Office also said the economy risks falling into recession amid escalating US-China trade dispute and slowing external demand.

Key Details:

“The index of coincident economic indicators, which consists of a range of data including factory output, employment and retail sales data, slipped a preliminary 0.4 point in August from the previous month.

The separate index for leading economic indicators, a gauge of the economy a few months ahead that’s compiled using data such as job offers and consumer sentiment, dropped 2.0 points from July.”

The above piece of news failed to deter the JPY bulls, as they retain control amid renewed US-China trade tensions. At the press time, USD/JPY trades -0.08% around 106.85, having hit daily lows at 106.66 in the Asian trades amid risk-off market profile.