AUD/JPY tests highs near 82.00, earthquake worries fade

The cross in the AUD/JPY is seen extending its recovery from a sharp drop triggered by the Japanese earthquake news, now aiming to reclaim 82 handle.

AUD/JPY reverses a downward spike to 81.43

The AUD/JPY pair now rises +0.37% to test daily tops reached at 81.97, as the cross fades the drop to near 81.50 and rebounds sharply, on the back of some aggressive selling seen in the yen, as worries over the Japanese earthquake and tsunami warnings faded after the government lifted all warnings and notice on the same.

While the risk-barometer also benefited from a significant improvement in the risk sentiment, in response to higher commodities and Asian equities. Meanwhile, the CBOE Volatility Index (VIX), a fear gauge, drops -3.35%, suggesting risk-on persists in full swing and underpins the sentiment around the higher-yielding currencies such as the AUD.

Technical Levels

Higher side: 82.34 (daily R2), 82.62/64 (Nov 16 & 15 highs)

Lower side: 81.57/52 (5 & 10-DMA), 80.82 (20-DMA)