USD/JPY prints session low under 110.00 as S&P 500 futures drop

• Yen is pushing higher with the S&P 500 futures flashing red. 
• Markets may be selling risk ahead of President Trump's impeachment proceedings. 
• BOJ is likely to keep key policy tools unchanged. 

The bid tone around the anti-risk Japanese yen strengthened a few minutes before press time, pushing USD/JPY lower from 110.21 to a session low of 109.91, possibly tracking the losses in the US equity index futures. 

Risk-off

The futures on the S&P 500 are currently reporting a 0.30% drop on the day. The index futures may have come under pressure on Trump's impeachment fears. 

The US Senate is set to begin the impeachment trial against President Donald Trump on Tuesday to decide on whether to convict and remove him from office on two charges: abuse of power and obstruction of Congress. 

The House passed the abuse of power article of impeachment in mid-December and also charged Trump with obstruction of Congress. 

With Republicans in control of the Senate, Trump's impeachment looks unlikely. Nevertheless, markets seem to be selling risk and buying haven assets at press time. 

Global growth slowdown

The International Monetary Fund (IMF) on Monday said the global economy will expand by 3.3% in 2020 and 3.4% next year, marking reductions from the previous forecasts, mainly because of lower growth in India.

The fund's downward revision of growth forecasts indicates the projected recovery for global growth remains uncertain. That could be pushing the yen higher. 

BOJ to stand pat

The Bank of Japan (BOJ) is likely to keep key policy tools unchanged on Tuesday. The Bank will also be releasing its quarterly Outlook Report together with its decision. 

The rate decision will likely be a non-event for the markets, unless the central bank offers a dovish or hawkish surprise, although that looks unlikely. 

Technical levels