I think, that I would have scrambled with 3 fighters to SZ110 because of the lack of sub fodder and 1 fighter to SZ109.
In my turn I would have attacked the remaining sub(s) in SZ109 with SZ106 destroyer and air to prevent convoying.
The z102 rule allows USA to sink the German fleet with carrier-based planes post-sealion, even if japan is still Neutral and bombers have nowhere to land (which is unlikely).