AUD/JPY holding near highs ahead of Japan Household Spending

• The Aussie recovers mildly against the Yen as risk-off falls out of market favour.
• Japanese indicators for Friday could swing Asia sentiment heading into the weekend.

The AUD/JPY is trading on the high side, testing over 82.50 in the overnight session.

The Aussie lifted against the safe-haven Yen as markets returned to a risk-on stance, trade war fears getting shelved for now as traders expect a negotiated resolution to the US-China tariff stand-off.

The Yen will be seeing Household Spending at 23:30 GMT, which is expected to contract from 1.9 percent for the previous figure to 0.3  percent, a positive number but still a decline in domestic consumption spending. Japan will also be dropping their Leading Economic Index for February at 05:00 GMT Friday, which is also expected to decline slightly from 105.6 to 105.5.

AUD/JPY Levels to watch

With the pair lifting into fresh highs, immediate resistance is seen at the 34-day EMA near 82.80, with further resistance sitting at the last swing high for the pair at 84.50, with support at the last two swing lows, at 81.50 and 80.90.