AUD/JPY bounces-off 82.65, will it regain 83 handle?

Amid holiday-thinned light trading, markets remain on the back foot and refrain from placing any fresh bets on the majors, leaving the cross in AUD/JPY in narrow ranges below 83 handle.

AUD/JPY: Upside capped amid a lack of fresh incentives

The recovery in AUD/JPY lost legs just below 83 handle once again, as the yen buyers continue to lurk across the board amid mixed market sentiment, while a minor-comeback staged by the AUD/USD pair, in the wake of a tepid recovery attempt seen in copper, oil and the European equities, keeps the downside cushioned.

Moreover, further upside appears to lack follow-through, in absence relevant fundamental catalysts amid slowing volumes and low volatility, as the Chinese, UK and US markets remain closed today on account of their respective National holiday.

Further, increasing nervousness heading towards a spate of crucial economic data due on the cards from the Aussie and US docket this week, keeps a lid on the prices. We have the highly-influential US payroll data and Australian capex data lined up for release in the week ahead.

Technical Levels

Higher side: 83.11/12 (5 & 10-DMA), 83.42 (20-DMA), 84.47/50 (Apr 5 high/ psychological levels)

Lower side: 82.50 (round figure), 82.28 (May 19 low), 81.71 (multi-week low)