AUD/JPY upside favoured to gap highs as risk sentiment continues to improve

Currently, AUD/JPY is trading at 83.75, up 0.79% on the day, having posted a daily high at 83.78 and low at 82.84.

AUD/JPY has rallied with USD/JPY making tracks while US stocks pick up the pace within the improved risk sentiment since the results of the first round in the French presidential elections. Macron is favoured to win and thus markets are bullish within the status quo and globalist era. The alternative outcome should Le Pen become the French president is seen to challenge globalisation, opening pandora's box in respect to European project and globalism as a whole.

So, for the meanwhile, the border tone is dominant and that is yen negative. However, there are plenty of political variables around the world that could shake up the market's nerves yet again at a drop of a hat and the cross will be vulnerable to risk aversion. Markets are looking out for Trump's tax plans tomorrow, the BoJ, Aussie CPI tonight and keeping an eye on the French polls, Brexit developments and geopolitical tensions.

Trump's tax plans to be made public Wednesday - UOB

AUD/JPY levels

AUD/JPY has the gap's opening price as first resistance at 83.51 with 84.51 ahead of 85.80. to the downside, 82.30/50 to close the gap and then 81.80 and 81.40/50 are the next support areas that guard 80.63 and 31st Oct 2016 highs.