AUD / JPY targets the 81.00 level as the recovery continues, now rising more than 2.0% on the week

• AUD / JPY continues its impressive winning streak on Tuesday’s week that has taken it from below 79.00 to close to 81.00.
• The pair was driven by a combination of aggressive RBA / risk appetite.

The crossing AUD/JPY it continued its impressive rebound that began on Monday through the end of the US session on Tuesday. The pair has now bounced roughly 2.3% from the start of the week from below 79.00 to near 81.00. Earnings have been boosted so far this week as investors scramble back to risky assets (such as equities, commodities, and risk-sensitive currencies like the Aussie) as Omicron fears they vanish. The aggressive interpretation of many analysts, who read between the lines of the RBA’s latest monetary policy decision that the bank was opening the door to previous rate hikes, also provided support for the Australian dollar.

While the recent winning streak is impressive, the pair is still trading around 2.6% below its pre-Omicron levels near 0.8300. But the fact that the pair was able to bounce so well off the September low around 79.00 is promising and if the aggressive RBA / risk appetite rhetoric continues, there is room for the pair to rally. Technicians can point to an eventual move back towards 82.00, which is roughly in line with the 50% retracement of the Fibonacci level from the October high to the August low, as well as the 21-day moving average.

Technical levels