#AUDJPY @ 92.1690 takes the bids to refresh multi-day top, rising for the fourth consecutive day on RBA’s move. (Pivot Orderbook analysis)

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• AUD/JPY takes the bids to refresh multi-day top, rising for the fourth consecutive day on RBA’s move.
• RBA defies market forecasts of keeping benchmark rate unchanged, lifts OCR to 3.85%.
• Downbeat Aussie inflation expectations, mixed sentiment challenge risk-barometer pair.
• BoJ versus RBA divergence can keep pair buyers hopeful.

The pair currently trades last at 92.1690.

The previous day high was 91.33 while the previous day low was 90.04. The daily 38.2% Fib levels comes at 90.84, expected to provide support. Similarly, the daily 61.8% fib level is at 90.53, expected to provide support.

AUD/JPY rallies to the highest levels since early March, up 1.10% intraday near 92.15 early Tuesday as the Reserve Bank of Australia (RBA) board members decided to lift the Official Cash Rate (OCR) by 0.25% to 3.85%. In doing so, the cross-currency pair also cheers upbeat economic forecasts from the Australian central bank amid dovish Bank of Japan (BoJ) bias.

Not only does the RBA announce a 0.25% rate hike but the Aussie central bank also expects further tightening of the monetary policy. That said, the RBA also revised its inflation and Gross Domestic Product (GDP) forecasts in the latest policy document.

Also read: RBA: Board expects that some further tightening of monetary policy may be needed

Apart from the RBA moves, the BoJ’s preference for the easy money policy and cautious optimism after the First Republic Bank actions add strength to the AUD/JPY pair’s upside momentum.

Against this backdrop, S&P 500 Futures track Wall Street’s indecisiveness near 4,180, retreating from a three-month high, whereas the US 10-year and two-year Treasury bond yields ease from a one-week high to 3.55% and 4.13% at the latest.

Having witnessed the initial reaction to the RBA’s surprise move, AUD/JPY pair traders may keep their eyes on the risk catalysts for clear directions. Among them, headlines surrounding the US debt ceiling expirations and the US-China tension will be crucial to watch.

A clear upside break of the downward-sloping resistance line from late October 2022, around 91.40 by the press time, directs AUD/JPY buyers toward February’s high of around 93.05.

Technical Levels: Supports and Resistances

AUDJPY currently trading at 92.08 at the time of writing. Pair opened at 91.18 and is trading with a change of 0.99% % .

The pair is trading above its 20 Daily moving average @ 89.37, above its 50 Daily moving average @ 89.6 , above its 100 Daily moving average @ 90.23 and below its 200 Daily moving average @ 92.18

The previous day high was 91.33 while the previous day low was 90.04. The daily 38.2% Fib levels comes at 90.84, expected to provide support. Similarly, the daily 61.8% fib level is at 90.53, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 90.37, 89.55, 89.07
• Pivot resistance is noted at 91.66, 92.15, 92.96

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