AUD/JPY approaches Monday’s low on BOJ, risk-off

The AUD/JPY cross met fresh supply in early Asia, and from there resumes its bearish trend in wake of renewed JPY buying amid risk-off and BOJ’s status-quo.

AUD/JPY trades below 20-DMA

The AUD/JPY pair drops -0.24% to 85.77, reversing a spike above 86 handle. The cross came under renewed selling pressure after the USD/JPY pair slumped to daily lows, with the yen gaining ground across the board after the BOJ made no changes to its monetary policy settings and revised up its GDP forecast.

However, the downside appears cushioned as the Aussie stands resilient to a renewed risk-off wave triggered Trump headlines, which reinforced concerns over the US political scenario and its impact worldwide. The cross also finds support somewhat from a rebound in the Australian business confidence numbers, published by NAB earlier on the day.

Technical Levels

Higher side: 86.19 (10-DMA), 86.50 (psychological levels)

Lower side: 85.64 (previous low), 85 (round figure)