AUD/JPY regains 83.00 and beyond as Yen slips ahead of BOJ

The AUD/JPY cross staged a solid comeback in the Asian session this Thursday, mainly driven by a rebound in USD/JPY, as the yen remains broadly sold-off into expectations of a dovish BOJ decision due on the cards in mid-Asia.

However, the gains appear capped as the Asian traders remain on the back foot and refrain from placing bets on risky assets such as equities, AUD, oil etc., in the wake of yesterday’s US tax reforms plan disappointment.

More so, a sharp drop in the Australian import prices data weighs down on the AUD/USD pair, keeping the AUD/JPY recovery in check.

The immediate focus remains on the BOJ policy outcome, while the US durable goods and trade balance data will take center-stage later in the NA session.

Technical Levels

Higher side: 83.80/81 (classic R1/ Apr 25 high), 84.47/50 (Apr 5 high/ psychological levels), 84.65 (50-DMA)

Lower side: 83 (key support), 82.78/70 (20 & 10-DMA), 82.51 (classic S1)