USD/JPY drops to 100-day MA as S&P 500 futures signal risk aversion

• USD/JPY dropped to the crucial 100 - day moving average (MA) support soon before press time.
• The JPY is pushing higher against US currency amid signs of risk aversion - S&P 500 futures are down 0.8 percent.

The anti-risk Japanese yen is solidly bid in Asia amid signs of risk aversion.

As of writing, the USD/JPY pair is trading at 112.35, having clocked a low of 112.24 a few minutes ago. More importantly, it has tested the crucial 100-day MA support of 112.27.

The losses are likely associated with the rising evidence of the global growth slowdown and the resulting risk-off tone in the equities.

China released a below-forecast November import and export growth figure over the weekend, highlighting the weakening global and domestic demand. Simply put, the world's second-largest economy may suffer a deeper slowdown than previously expected.

That is likely weighing over the risky assets on the first trading day of the week. The S&P 500 futures are currently down 0.8 percent. Meanwhile, Asian equities are a sea of red - Japan's Nikkei is down 2.28 percent and stocks in Australia, New Zealand, South Korea, and Hong Kong are down between 1 percent to 2.2 percent.

Looking forward, the USD/JPY pair may find acceptance below the 100-day MA if the risk aversion worsens and the spread between the US 10-year and two-year yield continues to narrow.

USD/JPY Technical Levels