USD/JPY: dips below 108 as S&P 500 futures drop

• USD/JPY hit a session low of 107.84 in Asia, possibly tracking the losses in the S&P 500 futures.
• Risk aversion in stocks may have put a bid under the Japanese yen, amplifying bearish pressures around USD/JPY.

The USD/JPY pair is currently reporting 0.24 percent losses at 107.90, having clocked a high and low of 108.26 and 107.84, respectively, earlier today.

The pair, which was trading on the defensive above 108.00 in early Asia, fell below that psychological mark, seemingly due to risk aversion in the US stock futures and the resulting haven demand for the Japanese yen. As of writing, the S&P 500 futures are reporting a 0.5 percent drop at press time.

Moreover, the US-China trade negotiations failed to produce a breakthrough deal. As a result, the S&P 500 futures – currently down 0.5 percent on the day – could extend losses during the day ahead.

Further, the European desks could continue to offer US dollars, courtesy of the dovish Fed minutes. The pair, therefore, risks falling further toward the Jan. 4 low of 107.51.

USD/JPY Technical Levels