AUD/JPY Bulls cheer RBA FSR, surpasses 84.50

The AUD/JPY cross gathered significant pace to the upside following the release of RBA’s Financial Stability Review (FSR), while focus now remains on the Chinese data deluge.

AUD/JPY tested 84.50 levels

The AUD/JPY pair now advances +0.42% to fresh nine-day highs of 84.54, heading for a test of 85 handle. The cross found fresh bids just ahead of 84 handle and finally broke out of its overnight consolidation box, with upbeat RBA’s FSR providing fresh impetus to the AUD bulls. The FSR noted that the Australian financial system remains in good shape and “overall household resilience remains sound, supported by jobs growth and low rates.”

Moreover, a minor recovery in the oil prices coupled with expectations of better Chinese data flow also keeps the Aussie underpinned. While renewed buying interest seen around the USD/JPY pair, despite subdued Asian equities also help support the upside in the prices.

Looking ahead, the immediate focus now remains on the Chinese GDP, industrial production and fixed asset investment data due for release shortly, which is expected to provide next direction on the cross.

AUD/JPY Technical Levels

To the upside, the next resistance is located at 84.72/85 (Apr 5 high/ round number) and above which it could extend gains to at 85.64/889 (daily S3/ 200-DMA).To the downside immediate support might be located 83.99/75 (daily pivot/ 50-DMA) below that at 83.10/83 (1h 100-SMA).