USDJPY: Bears set to extend gains below 109.072

USD/JPY is trading below 50 and 100 EMA in a short-term downtrend. After breaking below the intraday low at 109.361 in a 4-hour timeframe, a growing coronavirus fear-driven demand for safe-haven yen has led the USD/JPY to approach lower levels, extending Monday's decline.

On the other side, the dollar index dipped on Tuesday in a relatively tight trading range. Traders remain cautious ahead of key employment data due to be released later this week.

Economic data released on Tuesday is expected to show a growth of 1.0% in June factory orders, a decline from 1.7% a month earlier.

The dollar-yen is expected to fall further from a technical view if the spot closes below the support level at 109.361. The immediate target is estimated at a 1.618 Fibonacci extension level of 109.072. with prevailing bearish momentum, the price may meet 108.894.

Otherwise, the breakout above the swing high resistance at 109.828 could reverse the bearish trend in the short term.