AUD/JPY: Bulls struggle to rise above 85.50

The bullish move in the AUD/JPY cross appears to have lost legs just shy of 85.50 barrier in the Asian hours, as the yen stalled its downslide against the greenback.

AUD/JPY: Risk-on in vogue

The AUD/JPY pair now gains +0.46% to trade at 85.39, having surpassed most major DMAs. AUD/JPY clings onto recovery gains, mainly tracking the rebound in AUD/USD amid continued to rally in copper prices.

However, further upside appears capped as the USD/JPY pair halted its latest leg higher at 118.20 and receded below 118 handle, keeping the losses in yen limited. The risk barometer, although remains strongly bid amid risk-on moods, as the Asian markets, particularly the Japanese stocks, kick-off the New Year with great poise.

Technical Levels

Higher side: 85.64 (daily R1), 86 (round figure)

Lower side: 84.70 (5-DMA), 84.45 (10-DMA)