The contrast in the risk mood today and yesterday isn't really helping
The pair is keeping in between the key hourly moving averages as near-term price action continues to search for a firm direction amid concerns about the new coronavirus outbreak in China over the past two days.
Topside is capped by the 100-hour MA (red line) @ 110.09 with downside also limited by the 200-hour MA (blue line) @ 109.96 with further support sitting close by around 109.79.
Looking further to the downside, there is minor swing region around 109.60-70 with bids reportedly lined up around 109.50-70 as well.
Despite the slightly more positive risk tilt over the past few hours, I reckon it is still too early to say that investors have completely moved past the virus fears at this stage.
As such, we could be in for more tepid and choppy trading depending on the risk tilt. For the case of USD/JPY, just watch for the key near-term levels defined as per the above.
They will give a good sense of whether or not we will see some form of directional breakout in the near-term at the very least.
