The pair started the day with a move lower to 111.22 as the market turned risk-off amid the coronavirus outbreak but found support around 111.25 as noted earlier here.
Buyers leaned on that level to push price towards 111.50-60 to start European trading but we are seeing the yen track higher once again amid the risk-off mood in the market.
European equities are on the receiving end of a massive beating, with Italian equities down by over 4% and most major indices down by more than 3% on the session so far.
Bond yields are also weighed heavily lower, with 10-year Treasury yields still sitting below 1.40% - down by 8.4 bps on the session currently.
In turn, the yen is starting to go with the flow a little as USD/JPY tracks back lower but so far, is still a bit critical in breaking support around 111.25 with the 100-hour moving average also resting nearby at 111.19.
Those will be key near-term levels to watch in the session ahead. If sellers can start to drive price back below that and 111.00, perhaps the yen will start to fall back in line with what we are more accustomed to in the currency and its reaction to risk.