AUD/JPY Price Analysis: The break above the 200-DMA opened the door for the bull’s eyeing 83.00

• The AUD/JPY appreciates during the day, on the back of an improvement in risk appetite.
• Covid-19: Positive news on the Omicron-related front, easied investors worries of a possible lockdown which could spur an economic slowdown.
• AUD/JPY Price Forecast: AUD bulls will need to hold the spot above the 200-DMA so that they can challenge 83.00.

On Thursday, the Australian dollar rallies for the third consecutive day, trading at 82.87 as Wall Street heads for a large weekend at the time of writing. Positive news in the Covid-19 front spurred demand for risk-sensitive currencies, like the AUD. In the UK, the Health Secretary reported that people infected with the Omicron variant were 50% to 70% less susceptible to requiring hospitalization. Additionally, in the last couple of days, the US Food and Drug Administration (FDA) approved Pfizer and Merck Covid-19 treatment pills, which could be used in high-risk patients, with the effectivity of 89% and 50%, each.

In the FX market, spurred demand for AUD, NZD, GBP, and CAD, all part of risk-linked currencies. The laggards of the session are the safe-haven and low-yielders like the USD, the CHF, and the JPY.

In the meantime, in the last three days, the AUD/JPY has enjoyed a 280-pip rally since Tuesday of this week. Of note, Thursday’s price action, punch-through the 200-daily moving average (DMA) lying at 82.65, though the upward move stalled at the 50-DMA at 82.93.

AUD/JPY Price Forecast: Technical outlook

That said, the AUD/JPY has an upward bias, though it would need that AUD bulls hold the spot above the 200-DMA. Nevertheless, in that event, the AUD/JPY would face crucial resistance levels to overcome, like the 61.8% Fibonacci retracement at 83.27. A breach of the latter would expose the November 16 swing high at 84.16, followed by the 78.6% Fibonacci retracement at 84.50.

On the flip side, the first support would be the 200-DMA at 82.65. A decisive break under that level would expose the 50% Fibonacci retracement at 82.42, followed by the 100-DMA at 81.80.