AUD/JPY Price Analysis: Approaches 82.00 amid a risk-on market sentiment

• The market sentiment is upbeat, boosts the risk-sensitive currencies like the Australian dollar.
• AUD/JPY: A daily close above the 200-DMA opens the door for an 84.00 challenge.

The AUD/JPY rises for the second day in a row, advancing 0.05%, trading at 81.62 at the time of the writing.

The market sentiment is upbeat, portrayed by US stock equity indices posting gains between 0.80% and 1.00%. On Wednesday, US Senator McConnell announced a debt limit increase, improving the sentiment. As of Thursday, negotiations between US President Biden, Democrats, and Republican Senators intensified. Further, during the New York session, the US Senate majority leader Chuck Schumer announced an agreement on extending the debt limit by $408 billion until early December, adding to the positive mood.

AUD/JPY Price Forecast: Technical outlook

Daily chart

The AUD/JPY spot price is approaching the confluence of September’s three high and the 100-day moving average (DMA) around the 81.90 - 82.02 range. A breach of the latter could pave the way for further gains. The  200-DMA at 82.31 would be the first resistance level, followed by the July 13 high at 82.82, and then the psychological 83.00. 

On the other hand, for AUD/JPY sellers to regain control, they need a daily close below the 50-DMA at 80.46. in case of that outcome, the first support level would be October’s first low at 79.90. A breach of that level, a move towards 77.89, is on the cards, but September’s 23 low at 78.84, would be on the way.

The Relative Strength Index (RSI) is at 60, aiming higher with enough room to put another leg up, before reaching oversold levels.

KEY ADDITIONAL LEVELS TO WATCH