AUD/JPY Price Analysis: Bulls remain hopeful of craking 83.00 after reclaiming the 100-DMA

• The Australian dollar continues its weekly rally vs. the Japanese yen, up 1.79% in the week.
• US equity indices finished Wednesday’s trading session with gains between 0.86% and 2.10%.
• AUD/JPY Technical Outlook: An upside break above 83.00 could pave the way towards 85.00. 

The AUD/JPY extends its gains during the week rallies for the third straight day, taking advantage of an upbeat market mood. At the time of writing, the AUD/JPY is trading at 82.97.

Wall Street finished Wednesday’s trading session with gains, portraying the market player’s sentiment. The Nasdaq Composite rose 2.10%, up to 15.056.96, followed by the S&P 500, which jumped 1.45% towards 4,587.18, and the Dow Jones Industrial advanced 0.86%, closed at 35,768.06.

In the FX complex, risk-sensitive currencies posted gains led by antipodeans (NZD and AUD), the CAD, and the EUR, while safe-haven peers slid.

AUD/JPY Price Forecast: Technical outlook

On Tuesday’s article mentioned that “the AUD/JPY broke a bullish flag to the upside, though the 100-DMA capped the move.” Nevertheless, on Wednesday, AUD bulls reclaimed the 100-day moving average (DMA) at 82.56, sending the AUD/JPY near the 83.00 figure. Furthermore, a daily close above the aforementioned has been confirmed, confirming the shift to a neutral-bullish bias.

The AUD/JPY first resistance will be the 83.00 figure. An upside break would expose the four-month-old downslope trendline around the 83.25-40 range, followed by the January 5 daily high at 84.30 and then the 85.00 psychological figure.

On the flip side, failure at 83.00 could pave the way for further downward pressure in the cross-currency pair. The first support would be 82.00, extending the drop top-trendline of the bullish flag, viewed as a false breakout. A crackdown of the 82.00 mark would expose January 24 daily low at 80.69, followed by January 28 at 80.36.