USD/JPY is weighed down by the softer risk mood but buyers still defend the 200-hour moving average so far today
That is the level that is helping to keep the pair afloat as price continues to trade around 109.90-00 to start European morning trade.
The yen is keeping more firm amid risk aversion in markets amid China virus concerns.
For USD/JPY, it is all about the battle of the near-term bias now with buyers defending the 200-hour MA (blue line) @ 109.90 while sellers are keeping price below the 100-hour MA (red line) @ 110.07.
Towards the downside, further support and bids are seen around 109.60-70 - which is the region that will bring back the "old" range for the pair:
For sellers, keeping below that will help to extend the downside bias but so far they are lacking conviction to even try and seize near-term control as seen above.
Ultimately, if there aren't any further negative catalysts in the market, fading the fear is the way to go in dealing with the current situation. The Ebola virus outbreak in October 2014 was a prime example of how the market reacted and this has a similar ring to it.
