FxWirePro: AUD/JPY grinds higher above 200W MA, hits 2-year high at 80.92

AUD/JPY chart - Trading View 

AUD/JPY was is extending gains above 200W MA, the pair is rising for the 4th straight session.

Technical studies are biased higher. The pair is on track for further gains, eyes 78.6% Fib at 83.72.

Risk sentiment remains buoyed on expectations of higher US fiscal stimulus after the Blue sweep of the Senate.

However, diplomatic tensions between the US and China are likely to intensify further amid US ambassador's Taiwan visit and US’ delisting of Chinese telecom companies.

For now, improved risk sentiment is supporting gains in the pair, but virus woes and Sino-American tensions to keep upside in check.

Price action has hit 2-year high at 80.92 before paring some gains to trade at 80.67 at around 08:30 GMT.

AUD/JPY trades with a strong bullish bias. The pair is on track to test 110 month EMA at 81.47.

5-DMA is immediate support at 80.05. Break below will see dip till 21-EMA at 78.93. Violation at 21-EMA could change near-term bias.