FXStreet (Mumbai) - The Australian dollar reversed a part of previous losses and edged higher against its Japanese counterpart this session, driving AUD/JPY to fresh session highs just a hair-line short of 89 handle. AUD/JPY rises from 88.50 levels Currently, the AUD/JPY pair rises 0.21% to 88.88, easing slightly from fresh session highs reached at 88.99 shortly after Chinese data release. AUD/JPY extends its recovery from weekly lows and receives further boost from higher Chinese inflation figures, which eased concerns over China slowdown fears for now. China’s inflation ticked higher in Nov, coming in at 1.5% y/y against 1.3% booked in Oct. Markets had predicted an increase of 1.4% for Nov. However, the upside remains capped as risk-off sentiment persists on the back of extension of declines in the Asian stocks, thus, bolstering the safe-haven bids for the yen. Moreover, the rout in the oil prices continue to weigh on investors’ mood. In the day ahead, markets will digest the latest China inflation report while tracking the sentiment on the equities and oil markets in absence of significant macro data. AUD/JPY Technical Levels To the upside, the next resistance is located at 89.55/64 (10-SMA/5-DMA) and above which it could extend gains to 90.26 (200-DMA). To the downside immediate support might be located 88.31 (Nov 26 low) below that at 88 (Nov 30 low). For more information, read our latest forex news.