#AUDJPY @ 89.1460 has galloped sharply above 89.20 as BoJ continues its ultra-loose monetary policy as expected. (Pivot Orderbook analysis)

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• AUD/JPY has galloped sharply above 89.20 as BoJ continues its ultra-loose monetary policy as expected.
• The BoJ is ready to take additional easing steps without hesitation as needed while striving for market stability.
• A neutral interest rate stance is expected from the RBA amid declining Australian inflation.

The pair currently trades last at 89.1460.

The previous day high was 88.86 while the previous day low was 88.14. The daily 38.2% Fib levels comes at 88.58, expected to provide support. Similarly, the daily 61.8% fib level is at 88.41, expected to provide support.

The AUD/JPY pair has run swiftly above 89.20 in the Asian session after the Bank of Japan (BoJ) decided to continue its ultra-loose monetary policy. BoJ Governor Kazuo Ueda in his first monetary policy meeting has announced the maintenance of expansionary monetary policy and has kept the band of Japanese Government Bonds (JGBs) band unchanged.

The decision of keeping rates in negative territory was highly expected as the central bank is struggling to keep inflation steadily above 2%. As the impact of higher import prices has concluded, inflationary pressures in Japan are failing to firm their feet.

Earlier, Nikkei reported that in the review, the BOJ will seek to clarify the effectiveness and side effects of its monetary easing steps and make use of the findings in future policy conduct. Therefore, more action is still expected from the BoJ ahead. It seems that the odds of an exit from the ultra-loose monetary policy have receded as BoJ Ueda has stated “Will take additional easing steps without hesitation as needed while striving for market stability.”

On the Australian Dollar front, investors are shifting their focus toward the interest rate policy from the Reserve Bank of Australia (RBA). Consistently declining Australian inflation is expected to provide room for RBA Governor Philip Lowe for keeping interest rates steady consecutively.

Economists at UOB cited, “Following inflation figures, the RBA is likely to remain on the sidelines at the upcoming monetary policy meeting on 2 May. As such, we continue to see the current 3.60% cash rate as the likely peak. Focus will nonetheless continue to be on incoming economic data, including 1Q23 wage price index (17 May), followed by Apr employment (18 May).”

Technical Levels: Supports and Resistances

AUDJPY currently trading at 89.16 at the time of writing. Pair opened at 88.82 and is trading with a change of 0.38 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 89.24, 50 SMA 89.68, 100 SMA @ 90.28 and 200 SMA @ 92.22.

The previous day high was 88.86 while the previous day low was 88.14. The daily 38.2% Fib levels comes at 88.58, expected to provide support. Similarly, the daily 61.8% fib level is at 88.41, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 88.35, 87.88, 87.62
• Pivot resistance is noted at 89.07, 89.33, 89.8

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