FxWirePro: AUD/JPY eyes 200W MA at 79.19, outlook bullish

AUD/JPY chart - Trading View 

AUD/JPY was trading 0.25% higher on the day at 78.53 at around 06:45 GMT.

The pair trades with a major bullish bias. Volatility is rising as evidenced by widening Bollinger bands.

Momentum is bullish. MACD supports gains. Positive DMI dominance supports upside. ADX is rising.

Latest survey conducted by the Bank of Japan (BOJ) showed on Monday that sentiment amongst Japanese manufacturing and services firms improved for the second straight month this year.

The headline index for big manufacturers’ sentiment improved to minus 10 in December from minus 27 in September.

Big non-manufacturers’ sentiment also recovered to minus 5 from minus 12 in September. Big firms plan to cut their capital expenditure by 1.2% in the current business year to March 2021.

The Australian dollar stays buoyed as markets cheer positive Brexit and vaccine-related news.

Furthermore, the record high of iron ore contracts on the Dalian Commodity Exchange also favors the AUD/USD bulls. Iron ore recently crossed the $150 mark for the most active contract.

AUD/JPY on track to test 200W MA at 79.19. Decisive break above will fuel further gains.