USD/JPY nears key technical levels as safety flows keep the yen bid

Technical Analysis

Author: Justin Low | usdjpy

USD/JPY sits around 109.00 currently but price had earlier moved close to test the 100-day moving average

USD/JPY D1 27-01
As risk aversion continues to dominate proceedings to start European trading, just be mindful that we are approaching some key levels for USD/JPY.

At the lows today, price moved towards testing the 100-day MA (red line) @ 108.72 but has moved off a little to stick around 109.00 currently. That and the 200-day MA (blue line) @ 108.50 will be key levels to watch in the pair this week.

If fears surrounding the coronavirus continue to push more flows into haven assets, the yen stands to benefit and breaking those key levels will accelerate gains in the currency towards testing key support around 107.90-00 next.

USD/JPY H1 27-01
Looking at the near-term chart, the bias continues to favour sellers as price is continuing to keep below the key hourly moving averages @ 109.60 and 109.84 respectively.

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