AUD/JPY bulls attacking the 82 handle as risk-off eases

• Risk-on mood sees a lower yen, higher stocks, and reversal down on gold on Wednesday.
• The AUD/JPY is attempting to close above the 82 figure.

The AUD/JPY is trading at around 82.20 up 0.33% on Wednesday as investors are momentarily shrugging-off trade war fears and selling the Japanese yen which is seen as a safe-haven in times of market fears. 

Although the Asian session saw renewed concerns of a global slowdown led by fears stemming from the escalation of a trade war between the US and China, stocks are higher, gold is lower, the US Dollar is steady at $90 and the yen is lower across the board.  

Earlier in Asia, the Services Purchasing Managers Index (PMI) released by Markit Economics decelerated to 50.9 from 51.7 last month coming below expectations at 51.6 for March. 

AUD/JPY weekly chart

The bulls want to keep the market above last week’s high at 81.97. Their target is the 84 figure above. The weekly RSI is at 39.70 and the MACD show a slowing bearish momentum. 

AUD/JPY daily chart

Bulls are currently breaking above the 82 handle which acted as resistance for the last two weeks. The next resistances are seen at 82.60 and 84.53 swing highs. 

AUD/JPY 4-hour chart

The 82.60 level will be key on the AUD/JPY cross as it is the confluence zone of the last swing high and the 200-period simple moving average. If the level is broken to the upside the 83 figure and 84.53 swing high are the next resistances at sight. Support is seen at 81.90 with the 100-period simple moving average, followed by 81.25 and 80.82 swing low.