The pair eased to a fresh low since 4 November earlier, touching 108.63 before staying around 108.65-75 levels currently.
Sellers are still in near-term control after driving price below the 200-hour MA (blue line) in trading yesterday but support from the 50.0 retracement level and the 7 November low @ 108.65 is still helping to keep buyers in the game for now.
As things stand, it is still all about risk sentiment and so far the past few headlines surrounding US-China trade talks have been less than encouraging.
The latest one here continues to highlight some key sticking points and it could yet blow up into something bigger the longer this trepidation drags on.
For USD/JPY today, support at 108.65 is one to watch before the 61.8 retracement level @ 108.50 comes into play. Tracking below that, bids around 108.00 will then be eyed by sellers in any further move to the downside.
As for any potential upside move, buyers will have to tackle hurdles from the 200-hour MA @ 108.97 and then the 100-hour MA (red line) @ 109.06 to regain near-term momentum.