AUD/JPY has kicked off a new week with a bang, closing in on the $83 mark, up over two big figures so far.
The widening US-Japanese yields differentials continue to benefit USD/JPY, in turn, boding well for the cross. Meanwhile, surging natural gas prices lifts the sentiment around the aussie dollar, despite the risk-off trading in the European equities.
At the time of writing, AUD/JPY is trading at 82.82, up 1.04% on the day, looking for a sustained move above the 83.00 mark.
Technically, the cross has recaptured the critical horizontal 200-Daily Moving Average (DMA) at 82.35, having found a strong foothold above the downward-sloping 100-DMA at 81.82.
The 14-day Relative Strength Index (RSI) is sitting just beneath the overbought territory, allowing room for more upside.
Acceptance above the 83.00 level could call for a test of the July tops at 84.19.
On the flip side, the buyers remain cheerful so long as the 100-DMA resistance-turned-support holds.
A break below the last could trigger a sharp sell-off towards the 80.00 psychological level.
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