USD/JPY tests the waters under the 100-hour moving average once again
USD/JPY slips back below the 100-hour moving average on the softer risk mood
The battle continues for USD/JPY as buyers are looking to try and keep above the 100-hour MA (red line) to chase a break above the 110.00 handle and hopefully above the January highs around 110.25-30.
Meanwhile, sellers are looking to keep the pressure and firmly break below the 100-hour MA towards 109.50 after two previous attempts earlier in the week fell short.
Right now, buyers are losing some near-term control but they can still lean on the support region around 109.55-75 from lows seen since last Friday. The key would be to try and stay above the 100-hour MA @ 109.83 to maintain the more bullish near-term bias.
As for topside resistance, that can still be defined by the 110.00 level with the January highs at 110.25-30 posting an added resistance for a potential break higher.
It is still all about the risk mood more than anything else in the pair so continue to pay attention to coronavirus headlines in case of any sudden changes in sentiment.
A technical break below the 200-hour MA (blue line) @ 109.61 may set up a further run to the downside but for now buyers are still not particularly vulnerable just yet.