AUD/JPY rebounds sharply in Asia, 84.00 – a whisker away

The rebound in AUD/JPY gained extra legs post-Tokyo open, as the bulls extend control amid a better sentiment towards risk assets and a bearish consolidation seen in the US dollar across the board.

AUD/JPY around 5-DMA at 83.92

The cross is making minor-recovery attempts so far this session, after having halted two consecutive days of losses witnessed last week, as a solid recovery staged by the AUD/USD pair underpins amid a steady rising path seen in copper prices.

Moreover, fresh bids seen around USD/JPY after Friday’s sell-off induced by poor US retail sales and CPI data, which diminished odds of a Fed rate hike in June.

However, it remains to be seen whether AUD/JPY takes on the recovery above 84 handle, as the latest dismal Australian home loans data weighs down on the sentiment.

Also, reports of another ballistic missile launched by North Korea keeps the investors spooked, which could also keep further upside restricted in the spot. Moreover, increased nervousness ahead of the Chinese data dump due out shortly also keeps the prices in check.

Technical Levels

Higher side: 84.20 (May 12 high), 84.47/50 (Apr 5 high/ psychological levels), 85 (round number)

Lower side: 83.69/63 (200 & 20-DMA), 83.38 (May 10 low), 83 (key support)