AUD/JPY rises to 5-day high as US equities end 3-day decline

The Japanese Yen is being offered in Asia after the US equities snapped the three-day losing streak on Monday. The AUD/JPY clocked a 5-day high of 82.95 levels and looks set to take out the key psychological level of 83.00.

Risk reset?

The S&P 500 Index added 0.9% on Monday. All 11 S&P groups traded in the green. Some analysts attributed the rally to optimism about corporate earnings and easing geopolitical concerns. Meanwhile, oversold technical conditions may have played a role as well. In any case, It is too early to say the index has bottomed out, nevertheless the signs of risk reset are helping Yen crosses gain ground.

At the time of writing, the AUD/JPY cross was trading around 82.90. The Aussie side of the story looks weak given the sell-off in the iron ore prices. The main event for the AUD traders is the RBA meeting minutes due for release 1:30 GMT.

AUD/JPY Technical Levels

A break above 83.00 (A break above 83.00 (zero levels) would open up upside towards 83.82 (Mar 28 low) and 84.00 (zero levels). The rebound from the 200-DMA and the recovery in the daily RSI from the oversold territory suggests potential for a break above 83.00.

On the downside, breach of session low of 82.57 would expose support at 82.09 (200-DMA) and 81.82 (Apr 12 low).