USD/JPY trades around 108.50-55 to start the European morning
The pair is keeping mildly higher as US futures and Treasury yields are retracing some of the more risk averse movement seen on Friday ahead of European trading today.
Notably, price is keeping just above a key trendline support at 108.24 and is holding just above the 200-day MA (blue line) @ 108.42 as well. Those will be key levels to watch out for in case we do start to see price track lower during this week.
Further support is then seen around 107.93-00 with the January low @ 107.65 also one to keep an eye on should we see haven flows continue to pick up.
For now, coronavirus fears remain the key focus as that will determine how risk will react this week. So far, markets are keeping calmer but we'll have to see how the situation develops over the next few weeks for a better sense of how serious things are.
As for any upside potential in USD/JPY, there is resistance from the 100-day MA (red line) @ 108.72 before the 100-hour moving average @ 108.89 and offers around 109.00. After that, the 200-hour moving average @ 109.13 will be the next line of defense for sellers.