USD/JPY falls back to 5-day MA as S&P 500 futures drop 0.65%

• USD/JPY is feeling the pull of gravity, possibly due to haven demand for the anti-risk JPY.
• IMF's downward revision of global growth forecasts is likely weighing over the S&P 500 futures and Asian stocks.

The USD/JPY pair is currently trading at the 5-day moving average (MA) support 109.44, having clocked a high of 109.69 earlier today.

That pullback is likely associated with the risk aversion in the equities and the resulting haven bid for the Japanese yen - surplus currency.

As of writing, the S&P 500 futures are reporting a 0.66 percent loss. Meanwhile, Asian heavyweights like Nikkei, Kospi, Hang Seng, and the Shanghai Composite are down at least 0.6 percent.

It seems the risk sentiment has taken a hit due to the International Monetary Fund's (IMF) downward revision of the global growth forecasts. The fund predicts global growth of 3.5 percent this year, beneath the 3.7 percent expected in October, according to Bloomberg.

Further, the prospects of a breakthrough US-China trade deal are low, given the two sides have made little or no progress on key issues like the Chinese theft of American intellectual property.

Put simply, the path of least resistance for both the equities and the USD/JPY looks to be on the downside.

USD/JPY Technical Levels