AUD/JPY Price Analysis: Advances towards 97.00 on dovish BOJ policy

• A break of inventory distribution will infuse fresh blood into the aussie bulls.
• The dovish stance adopted by the BOJ has weakened yen against the antipodean.
• The RSI (14) is attempting to shift into the bullish range of 60.00-80.00.

The AUD/JPY pair has turned sideways in a narrow range of 95.43-95.57 after a firmer rebound from 95.20. The cross is expected to extend its gains as the Bank of Japan (BOJ) has kept a dovish stance in its monetary policy announcement. On a broader note, the asset is extremely bullish and is turning its every corrective move into an impulsive rally.

On an hourly scale, the cross is consolidating near the critical resistance, which is placed from June 21-high at 95.31. The asset is forming an inventory distribution that indicates the initiation of longs by those market participants, which prefer to enter a time corrective phase after a juggernaut rally.

The asset has surpassed the 20-period Exponential Moving Average (EMA) at 95.31 firmly in the Asian session. Also, the 50-EMA at 95.00 acted as crucial support for the counter.

Meanwhile, the Relative Strength Index (RSI) (14) is attempting to shift into the bullish range of 60.00-80.00. An occurrence of the same will infuse fresh blood into the aussie bulls.

For more upside, the asset needs to surpass Wednesday’s high at 95.76 for a high of June 8 closing price at 96.47. A breach of the latter will drive the asset to a fresh seven-year high of around 97.00.

Alternatively, a decisive downside below June 28 high at 94.72 will drag the asset towards the round-level support at 94.00, followed by July 15 low at 93.15.

AUD/JPY hourly chart