AUD/JPY Price Analysis: Rejected at the 200-DMA marches firmly towards weekly highs 83.30s
|- The Australian dollar grinds higher as the Asian Pacific session begins.
- AUD/JPY Technical Outlook: The downward move capped at the 200-DMA spurred the AUD surge above the 83.00 figure, so the pair is upward bias.
As the Asian Pacific session began and the New York session ended, the Australian dollar recovered some ground against the so-called safe-haven Japanese yen. At press time, he AUD/JPY is trading at 83.19. US equity indices finished the Wall Street session in the green, recording gains between 0.51% and 1.47%, whereas Asian stock futures point to a higher open.
AUD/JPY Price Forecast: Technical outlook
On Tuesday, the cross-currency pair was subdued in the 83.50-90 range during the overnight session. But an improvement in the market mood late in the Asian session, early Europe, alongside a rebound from tech-stocks, spurred demand for risk-sensitive peers, benefitting the Antipodeans, alongside the CAD.
That said, the AUD/JPY broke the top of the trading range and reclaimed the 83.00 figure.
The AUD/JPY is bullish biased. The pair dipped to the 200-day moving average (DMA) but was rejected, rallying towards resistance above 83.00. The first resistance would be the January 10 daily high at 83.36. A clear break above it would expose a four-month-old downslope trendline drawn, from October 2021 highs, near the psychological 84.00 area.
Conversely, the immediate support would be 83.00. A breach of the latter could send the AUD/JPY tumbling to the 200-DMA at 82.65. Once the level gives way to JPY bulls, the next stop would be the confluence of the 100-DMA and the January 10 daily low around 82.33, followed by 82.00.
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