AUD/JPY Price Analysis: Approaching key resistance at 72.00 area

• AUD/JPY approaches multi-month highs at 71.90 buoyed by a positive market mood.
• The pair faces an important resistance area at 72.05/15.

The Australian dollar has retraced Wednesday’s losses and appreciated about 0.5% through the day to return towards the upper range of 0.7100. The pair has been buoyed by the risk-on mood on hopes of a post-COVID-19 recovery as the main economies re-open, which has weighed the safe-haven yen.

Daily charts show the AUD/JPY trading just a handful of pips below 2, ½-month highs, at 71.90 and approaching a key resistance hurdle, where the trendline resistance from March 25 high meets the 200-day SMA at 72.05/15. A daily close above here might increase buying pressure, pushing the aussie towards 72.45 (Jan. 31 low) and 73.10/15 (Feb 7, 18 lows).

On the downside, immediate support lies at 70.80/00 (May 27 low, intra-day low) and below here, the 100-day SMA at 70.30 before 70.00 psychological level.

AUD/JPY daily chart

AUD/JPY key levels to watch