The AUD/JPY cross, a risk barometer, benefits from the improved risk sentiment in early Europe as markets cheer the rebound in riskier assets, particularly oil and industrial metals.
AUD/JPY hovers around 100-DMA at 85.16
Currently, the AUD/JPY pair trades 0.85% higher at 85.10, easing-off fresh session highs reached at 85.22 last minutes. The cross in the AUD/JPY strengthens further this session, largely backed by the strong gains seen in the AUD/USD pair, as the rallying oil and copper prices underpin.
While the return of risk-on trades into the markets, diminishes the safe-haven bids for the Japanese yen across the board and hence, supports the ongoing recovery in the AUD/JPY cross. Meanwhile, USD/JPY rises 0.28% to 113.52, hovering close to session highs printed at 113.59 levels.
Looking ahead, there is nothing of relevance in terms of macro data for the cross today and hence, markets look forward to the weekend’s Chinese industrial production and retail sales numbers ahead of the key BOJ policy decision next week.
AUD/JPY Technical Levels
To the upside, the next resistance is located at 85.50/64 (round number/ Mar 10 High) and above which it could extend gains to 86.17/22 (Mar 2 & 1 High). To the downside immediate support might be located 84.09/84 (daily low/ round number) below that at 83.61 (1h 200-SMA).
(Market News Provided by FXstreet)