AUD/JPY Price Analysis: Resumes run-up targeting 97.10 after BoJ inaction

• AUD/JPY reverses early-day fall but stays dicey near nine-month high.
• BoJ keeps monetary policy unchanged, defies inflation woes to drown Yen prices.
• Overbought RSI, one-year-old horizontal resistance zone challenge buyers.
• Bears need validation from previous resistance near 95.80.

AUD/JPY jumps 40 pips to 96.70 as the Bank of Japan (BoJ) refrains from any monetary policy change on early Friday. In doing so, the cross-currency pair reverses the initial pullback from the highest levels since September 2022, before retreating to 96.55 by the press time.

BoJ keeps the short-term interest rate target at -0.1% while directing 10-year Japanese Government Bond (JGB) yields with the band of +/-0.50%, per the latest monetary policy meeting update. The Japanese central bank also tames inflation fears by saying that the Consumer Price Index (CPI) around 3.5% recently owing to pass-through effects.

It’s worth noting that the overbought RSI (14) line challenges the AUD/JPY buyers even if the pair’s successful break of a previous horizontal resistance stretched from July 2022, now immediate support, suggests further advances of the quote.

As a result, a horizontal area comprising multiple levels marked since June 2022, around 96.90-97.05, gains the market’s attention ahead of the previously yearly peak of around 98.60.

On the flip side, a daily close below the resistance-turned-support of around 95.80 could trigger a short-term AUD/JPY fall.

The same highlights early October 2022 peak of around 94.70 and February’s top surrounding 93.00. Even so, the AUD/JPY bulls remain hopeful unless witnessing a clear break of the 200-DMA, at 91.75 by the press time.

AUD/JPY: Daily chart

Trend: Further upside expected