AUD/JPY remains well bid, eyes 50-DMA

AUD/JPY is trading positive around 84.50 levels and looks set to test the 50-DMA level of 84.72 following overnight gains on the Wall Street.

Upside break from the trading range

The pair traded sideways in the range of 82.80 to 83.80 before breaking higher on May Day. As of now, the spot is attempting to break through 84.50 - resistance offered by the trend line sloping downwards from Feb 16 high and Mar 2 high.

The offered tone around the Japanese Yen may gather pace later today if the European equities begin the day on a positive note. A rise to the 50-DMA level of 84.72 and beyond also depends on the US ADP report and ISM non-manufacturing report due later today.

AUD/JPY Technical Levels

A break above 84.72 (50-DMA) would open up upside towards 85.00 (zero levels) and 85.30 (200-DMA). On the lower side, breach of 5-DMA at 83.91 could yield a pullback to 83.38 (10-DMA) and 83.00 (zero levels).