USD/JPY rests under its key hourly moving averages but remains supported to start the European morning
The pair is keeping lower amid the softer risk tilt in the market and price is now trading under both the key hourly moving averages at 109.84-85.
However, near-term support around 109.60-75 is still limiting any downside move for the time being and that is keeping buyers 'in the game' ahead of European trading.
The key factor to watch in the sessions ahead is whether or not we will see the risk aversion deepen amid fears that the virus will have a major impact on the global economy.
There is little doubt that the global economy will take a hit but so far, investors have largely brushed those concerns aside.
However, with Apple coming up with a warning, is this the start of the market realising it has been too complacent? Or will dip buyers come in to save the day once again?
From a technical perspective, gains in USD/JPY is still limited under 110.00 with further resistance seen at 110.10 before 110.25-30.
Meanwhile, any major downside push requires a break under 109.50 to see sellers start to push the issue towards the 109.00 level next.
As such, unless there is a firm break on either side of those levels, the pair may still be trading more narrowly despite the slight risk-off tilt in the market at the moment.
