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AUD/JPY Bounces off the 200-Day Simple Moving Average (SMA) Moving Towards Weekly Highs Around 83.30

January 12, 2022

Talking Points:

  • As the Asian Pacific trading session begins, the Australian dollar continues to rise.
  • The AUD surged over the 83.00 level after the bearish move was limited at the 200-day SMA, indicating that the pair has an upward bias.

The Australian dollar gained momentum against the so-called safe-haven Japanese yen as the Asian Pacific trading session began and the New York session finished. The AUD/JPY is currently trading around 83.19 at the time of writing. The Wall Street trading session ended with US equity indices in the green, with gains ranging from 0.51 % to 1.47 %, while Asian stock futures suggest a stronger open.

AUD/JPY Technical Outlook

During the overnight trading session yesterday, the currency pair was trading around the 83.50-90 zone. However, a shift in market sentiment late in the Asian trading session and early in Europe, along with a rally in tech stocks, boosted demand for riskier assets, benefiting the AUD and the CAD.

As a result, the AUD/JPY broke through the trading range’s top and recaptured the 83.00 level.

The AUD/JPY is weighted to the upside. The pair tested the 200-day SMA but was rejected, rising towards 83.00 resistance. The first hurdle would be the 83.36 daily high set on the 10th of January. A strong break above it would reveal a four-month-old downslope trendline drawn from the October 2021 highs around the crucial 84.00 level.

The immediate support, on the other hand, would be 83.00. If the latter is breached, the AUD/JPY might fall below the 200-day SMA of 82.65. The convergence of the 100-day SMA and the 10th of January daily low, around 82.33, would be the next target for JPY bears, followed by 82.00.

AUD/JPY Daily Chart:

 

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