After a brief phase of consolidation following the release of the Chinese data dump, the cross in the AUD/JPY stormed its way through 84 handle and beyond amid risk reset.
AUD/JPY: Eyes on 84.50
The cross is heavily bid amid a major turnaround in risk conditions, after a rally in oil prices lifted overall market sentiment and boosted the demand for risk currencies such as the AUD at the expense of the safe-haven yen.
AUD/JPY cheered reports of Russia and Saudi Arabia favoring an extension of the OPEC cut deal until March 2018, which overshadowed mixed Chinese macro releases.
Looking ahead, the cross could regain 85 handle as ongoing recovery in AUD/USD continues to gain momentum amid firer European equities, higher treasury yields and broad based US dollar weakness.
Higher side: 84.47/50 (Apr 5 high/ psychological levels), 85 (round number), 85.53 (Mar 23 high)
Lower side: 83.69/63 (200 & 20-DMA), 83.38 (May 10 low), 83 (key support)