AUD/JPY defends 85.00 post-BOJ decision

AUD/JPY pares part of its early losses in the Asian session on Thursday.
Major Australian banks project early RBA rate hike estimates.
BOJ maintains the status quo, slashes GDP and inflation forecasts.

Rekha Chauhan Independent Analyst

AUD/JPY edges lower for the second straight day. After testing the high of 86.07 in the US session, the pair closed lower near 85.50. As of writing, the AUD/JPY is trading at 85.26, down 0.29% for the day.

Investors favored the riskier asset after the Bank of Japan (BOJ) kept its benchmark rate unchanged at -0.10% with the 10-year Japanese Government Bond (JGB) yield rate at around 0% during its October meeting by an 8-1 vote, as widely expected.

Further, in its latest publications, the BOJ expects core CPI at 0.0% versus 0.6% forecast in July while the FY 2021-22 Gross Domestic Product (GDP) arrives at +3.4% compared to +3.8% previous expectations.

It is worth noting that S&P 500 Futures are trading at 4,551, up 0.14% for the day.

On the other hand, the aussie holds the gains on the early rate hikes by the Reserve Bank of Australia (RBA). The Commonwealth Bank of Australia (CBA), one of Australia’s ‘Big 4’ banks, forecasted a rate hike in November of 2022, to 0.25% from previous bets for a May 2023 hike.

As for now, the divergent policy stand between RBA and BOJ amid risk-on mood will affect the pair’s performance in the short term.

AUD/JPY additional levels

AUD/JPY

Overview
Today last price	85.32
Today Daily Change	-0.24
Today Daily Change %	-0.28
Today daily open	85.56

Trends
Daily SMA20	83.48
Daily SMA50	81.56
Daily SMA100	81.85
Daily SMA200	82.63

Levels
Previous Daily High	86.06
Previous Daily Low	85.05
Previous Weekly High	86.26
Previous Weekly Low	84.28
Previous Monthly High	82.03
Previous Monthly Low	78.85
Daily Fibonacci 38.2%	85.43
Daily Fibonacci 61.8%	85.67
Daily Pivot Point S1	85.05
Daily Pivot Point S2	84.54
Daily Pivot Point S3	84.04
Daily Pivot Point R1	86.06
Daily Pivot Point R2	86.57
Daily Pivot Point R3	87.08

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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