The winger came under fire after appearing to go down easily under a challenge from Sociedad's Markel Bergara during the 0-0 draw in the UEFA Champions League on Tuesday.
Referee Nicola Rizzoli awarded a penalty, although Robin van Persie struck the post from the spot.
Moyes had previously declared that he "does not like diving" and "does not want his players diving" after Young was booked in an attempt to win a penalty against Crystal Palace back in September.
But the Scot sprung to the England international's defence this time around, revealing that he had not seen fit to speak with the 28-year-old about the issue.
"I didn't see an issue at all," he said.
"The referee was two yards away from it and gave a penalty. If you need to talk to anybody, you should ask the referee.
"The question is loaded towards the player. That is wrong. The question should be 'did the referee get the decision right or not'.
"He was two yards away from it. For me, where I was, I definitely thought it was a penalty.
"Everybody can now stand back and watch it from TV.
"I was one of many who said I would definitely have retrospective action for diving because it would make the referees job much better.
"But on the night, if you had said, could you get the referee any closer, I don't think you could."
