If sellers can keep a move below the 200-hour MA (blue line), then they will regain near-term control of the pair again. Buyers managed to find some momentum just under 109.00 but failed to build on that as we begin European trading today.
The risk mood remains the key factor driving yen pairs as we begin the week, with traders now having to digest the implications of a potentially weaker US economy alongside trade issues involving US and China, and now US and EU too.
For trading today, I reckon the key level to watch out for will be the 200-day moving average @ 108.91. If buyers can keep above that level, that should help to give them some base to build on in challenging for near-term control again - should fundamentals allow for that.
Meanwhile, the intraday high of 109.21 will be the spot to watch for any race higher in the pair with the 100-hour MA (red line) @ 109.42 set to act as a key near-term resistance level amid the more tepid risk mood over the past few sessions.