AUD/JPY sits at 4-week highs near 84.50 on BOJ

The AUD/JPY cross retreated sharply to near 84.30 levels in a knee-jerk reaction the BOJ’s monetary policy announcement, however, quickly recovered ground to revisit monthly tops hit at 84.50 levels.

AUD/JPY ignores BOJ’s status-quo

The cross in AUD/JPY remains strongly bid, having derived support from risk-on rally in the Asian equities, which boosted the higher-yielding currency AUD at the expense of the safe-haven Yen.

BOJ makes no changes to its monetary policy

Also, Yen selling persisted across the fx board, as markets shrugged-off the BOJ policy decision, keeping the spot near the best levels seen in four weeks. Meanwhile, USD/JPY dipped to 111 handle on BOJ’s policy announcement, before reverting to the familiar range near 10-day tops of 111.26.

All eyes now remain on the BOJ Governor Kuroda’s press conference for fresh insights on today’s policy outcome, while a batch of fresh US macro news will also influence the pair in the day ahead.

Technical Levels

Higher side: 85 (round figure), 85.50 (psychological levels), 85.77 (Mar 31 high)

Lower side: 84 (key support), 83.70 (daily pivot), 83.21/16 (50 & 10-DMA)