Bid tone around AUD strengthened, ensuring AUD/JPY trimmed losses to trade around 50-DMA level of 78.38 levels.
Markets fear BOJ could disappoint
Expectations are quite low as markets fear BOJ has little room to come out an extreme monetary stimulus. ‘Helicopter money’ was ruled out by Kuroda earlier this week and negative rate move was not well received by markets on Jan 29.
Consequently, Yen is trading higher across the board, thus limiting the upside in the AUD/JPY cross. The pair was last seen trading around 78.40 levels.
AUD/JPY Technical Levels
A breakdown of support at 78.09 (61.8% of Brexit day drop) would open doors for a slide to 77.00 (50% of Brexit day drop). On the other hand, breach of resistance at 79.04 (daily high) could yield a rally to 80.79 (June 1 high).
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