AUD/JPY holds above 200-HMA amid risk-on in equities

• AUD/JPY is trading above the 200-hour moving average (MA) in Asia, having rallied 2 percent on Friday.
• Improved risk sentiment and the resulting uptick in the stocks could bode well for the Aussie dollar.

The AUD/JPY pair is looking north amid risk-on in the global markets, having found acceptance above the 200-hour moving average (HMA) on Friday.

As of writing, the JPY cross is trading at 77.34 - up 2.8 percent from Friday's low of 75.2.

The global stocks picked up a bid on Friday on signs that Sino-US relations are back on track. The risk assets also cheered Powell's comments that the Fed will evaluate developments in the economy, financial markets and abroad in the coming months. As a result, the AUD/JPY pair jumped 2 percent.

Notably, Asian stocks are extending the Friday's risk-on rally. For instance, Japan's Nikkei is currently reporting a 3 percent gain. Further, the S&P 500 futures are up 0.68 percent, having gained more than 3.4 percent on Friday.

Therefore, the AUD and other risk currencies are likely to rise against the likes of JPY and CHF (funding currencies).

AUD/JPY Technical Levels