AUD/JPY stages a comeback after a risk-off dive, holding steady beneath 82.50

• The Aussie managed to recover against the safe-haven Yen as markets recovered from a quick spat of risk-off following reciprocal tariffs between the US and China.
• The pair is looking to mount up gains ahead of the Aussie trade balance, due at 01:30 GMT.

The AUD/JPY is continuing to hold on the high side, pushing near 82.50 in the overnight session.

The Aussie fell against the Yen in early Wednesday's trading, dropping to 81.25, but managed a recovery through the European and US sessions, kicking out the day's high and making headway into resistance formed by a swing high two weeks ago.

Ongoing tensions as the US and China hurl tariffs at each other rattled markets yesterday, but the market recovered quickly and risk appetite returned to bring assets like the Aussie back up the charts. With the latest round of tariffs announced, things should cool off for a couple of weeks as the Trump administration ponders their next move, with China's latest round of reciprocal tariffs waiting in the wings for activity from Washington. The AUD/JPY has been acting as a barometer of broader-market risk sentiment, and has been tumbling steadily since early February.

Australian Trade Balance figures are due at 01:30 GMT early Thursday, and the headline figure is expected to print a 700M surplus, a positive reading but still a decline from the previous figure of 1,055M.

AUD/JPY Levels to watch

Buyers are fighting hard on the AUD/JPY, but resistance is piled up all the way to the top, and as FXStreet's own Falvio Tosti noted, "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. 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. 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."