AUD/JPY rebounds towards 82.50, risk-on back in vogue?

The AUD/JPY cross staged a solid comeback over the last hour, bouncing-off a dip below 82 handle, following the release of better-than expected macro updates from the Asia-pac economies.

AUD/JPY back above 5-DMA at 82.20

The bulls fought back control amid risk reset, with the Asian equities recovering and Yen sellers returning, as dust settles over the London terror attack aftermath.

Moreover, markets now shift their attention towards the fundamentals, with upbeat Australian corporate profits and China services data offering the much-needed trading impetus.

The AUD/USD pair jumped back on the bids and now flirts with daily tops of 0.7450, while USD/JPY is also hovering near highs around 110.55 levels.

In early Asia, the cross tested the key support located near 81.90, as risk-off gripped Asia amid increased flight to safety, following the London terror attack news.

Looking ahead, the spot will continue to get influenced by the risk trends ahead of the US ISM services, factory orders and LMCI data due later in the NA session.

Technical Levels

Higher side: 82.96/83.06 (20 & 50-DMA), 83.50 (psychological levels), 84.12 (200-DMA)

Lower side: 81.92/91 (key support), 81.71 (multi-week low), 81.43 (Apr 19 low)