AUD/JPY fighting back to 82.00 as risk sentiment improves

• Risk appetite has returned for now and the Aussie is clawing back losses against the Yen from the week's opening rout.
• Mid-tier data awaits both currencies early in the Asia trading session.

The AUD/JPY pair is heading into the 82.00 handle after climbing steadily through Tuesday's action.

The Aussie toppled against the Yen to start the week off as trade tensions between the US and China continue to escalate, but risk appetite returned to markets yesterday and the Yen is walking back risk gains amid renewed confidence.

It's a quiet day for both the AUD and the JPY on the macro calendar for Wednesday, but the Yen will be seeing Japan's Markit Services PMI at 00:30 GMT, which is expected to come in at 51.6, a slight decline from the previous figure of 51.7. Followed that will be Australia's seasonally-adjusted Retail Sales for February, forecast at 0.3 percent, an increase over the previous reading of 0.1 percent, while the month-on-month Aussie Building Permits figures for February are expected at -5.0 percent, a contraction versus the previous 17.1 percent. Aussie indicators are all due at 01:30 GMT.

AUD/JPY Levels to watch

The Aussie has been struggling to find a floor against the Yen on Daily candles, and the pair is still trading deeply in bearish territory. A continuation to the short side will see some support from the bottom of last week's consolidation zone near 81.50, with further support from the week's current swing low near 80.80, while resistance sits at mid-March's swing highs of 82.50 and 84.25.