AUD/JPY accelerates towards 80 mark, risk-on persists

The cross in the AUD/JPY remains strongly bid amid risk-on market environment, now pushing the rate back towards three-month peaks reached just ahead of 80 handle.

AUD/JPY nears 80 handle

The AUD/JPY pair, currently, jumps +0.52% to fresh three-day tops of 79.74, making headways towards 80 – key psychological levels. The AUD/JPY cross, a risk barometer, builds on yesterday’s gains as the bulls look to benefit from higher yields amid persisting risk-on moods. Higher yielding currencies such as the AUD tend to benefit from a better risk tone.

Moreover, ongoing strength in the US dollar versus its major peers, also continue to lend support to the bullish momentum seen behind USD/JPY, which eventually adds to the upside in the cross. Next in focus remains the US dataflow, while the Australian Q3 inflation report is likely to have major impact on the prices.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 80.00/80.04 (psychological levels/ multi-month highs) and above which it could extend gains to at 80.50 (psychological levels).To the downside immediate support might be located 79.19 (daily low) below that at 78.51 (daily S2).