AUD/JPY eyes 81.00 level as recovery continues, now up more than 2.0% on the week
|- AUD/JPY continues its impressive run of gains on the week on Tuesday that has taken it from under 79.00 to near 81.00.
- The pair was boosted by a risk-on/hawkish RBA combination.
AUD/JPY continued its impressive bounce that began on Monday through to the end of Tuesday US session. The pair has now bounced roughly 2.3% since the start of the week from under 79.00 to close to 81.00. The gains have been spurred so far this week as investors rush back into risk assets (like stocks, commodities and risk-sensitive currencies like the Aussie) as Omicron fears fade. The hawkish interpretation of many analysts, who read between the lines of the latest RBA monetary policy decision that the bank was opening the door to earlier rate hikes, also offered the Aussie support.
Whilst the recent run of gains is impressive, the pair still trades about 2.6% below its pre-Omicron emergence levels of close to 0.8300. But the fact that the pair was able to bounce so well at the September low around 79.00 is promising and if risk-on/hawkish RBA vibes continue, there is room for the pair to go higher. Technicians may target an eventual move back towards 82.00, which is roughly in line with the 50% Fibonacci retracement back from the October high to the August low, as well as the 21-day moving average.
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