AUD/JPY: Bulls yearning for a test of 85 handle

After witnessing a vertical rise in the early Asian trades, the AUD/JPY cross is seen extending its bullish consolidative mode into the European morning.

AUD/JPY tracks AUD/USD higher

The AUD/JPY pair now gains +0.49% to trade at 84.78, eyeing a break above 85 barrier. AUD/JPY trims gains, although remains with a strong upside bias amid a solid rebound staged by the AUD/USD pair in sync with gold prices.  

While an upbeat tone seen behind the USD/JPY pair also added to the renewed upside seen in the cross so far this session. However, further upside appears to lack-follow through as broader market sentiment remains largely mixed and uncertain given persistent holiday-thinned light trading.

Technical Levels

Higher side: 85 (round figure), 85.38 (20-DMA)

Lower side: 84.36 (5-DMA), 84.04 (daily S1)