AUD/JPY retreats from 2-week high, eyes BOJ decision

AUD/JPY cross clocked a two-week high of 87.48 earlier today before falling to a session low of 87.06, partly due to a weaker-than-expected Aussie employment report.

Focus on BOJ rate decision

Bank of Japan is widely expected to keep the interest rate and yield curve control target unchanged. Nevertheless, markets would scan the policy statement for clues regarding a potential shift in the yield curve target in the near future.

Kuroda’s take on the rising bond yields and monetary policy in general could move Yen pairs as well.

In the meantime, the weak Aussie jobs data is likely to keep the AUD on the back foot.

AUD/JPY Technical Levels

The cross was last seen trading around 87.15. A breakdown of support at 86.95 (5-DMA) would open doors for 86.64 (10-DMA) and 86.35 (50-DMA). On the higher side, a break above 87.48 (session high + previous day’s high + Mar 2 high) could yield a quick jump to 88.00 (zero figure) and 88.18 (Feb 16 high).