From Dunlop's website:

However, there are steps that can be taken to minimize cupping and uneven wear on a motorcycle: Maintain your motorcycle and particularly your front and suspension. Avoid hard braking whenever possible. Braking causes the tire to grab and wear in one direction. When braking is applied to the front tire, the load transfer over-flexes the tire and increases the tendency for cupping and uneven wear. Maintain your tire pressures. Under inflation and overloading of motorcycle tires are significant causes of cupping and uneven wear, particularly in association with hard braking and/or trailer use.

http://www.dunlopmotorcycle.com/info-center/faq/

 

It has the cupping in the same area as you mention but is still running smooth.

 

Do you possibly have a bad fork seal? Low oil in the forks causes cupping too.

 

There are no visible signs of leaks.

 

Here is a crappy cell phone picture of the middle of the tire. The grey patch is is where there is contact black is cupping.

 

That is how mine is. Note it's not in the center were you get most of the wear. (Least were mine wear out) Its between the water slots and has gotten there from corner wear in turns. I think these tires (800) wear like this. There must be some slip going on as the slot comes in contact and it hits the cup patch area and sets up some kind of slight squirm. (Like a first grader with a #2 pencil erasure) If you cannot fill it in the bikes handling, it's going to wear out in the center before it wears out in that area. (Unless of course you drive in a lot of circles)HA. That if it's all way around is not balance, forks or tire pressure.