AUD/JPY going nowhere fast as Reserve Bank of Australia rounds the corner

• The AUD/JPY is freezing in place ahead of the Reserve Bank of Australia's rate call.
• Despite the Monday freeze, the Aussie is trading into 5-month highs against the Yen.
• The Reserve Bank of Australia is anticipated to raise rates once more.

The AUD/JPY is making itself comfortable ahead of the Reserve Bank of Australia's (RBA) anticipated rate hike. Money markets are expecting the Australian central bank to hike rates once more, with the median forecast at 25 basis points.

Australia Interest Rate Decision Preview: RBA set to tighten further after four straight meetings on hold

The Yen got no favors from the Bank of Japan (BoJ) this week after BoJ Governor Kazuo Ueda reaffirmed the central bank's dedication to hyper-easy monetary policy.

The BoJ made a minor adjustment to its Yield Curve Control (YCC) mechanism last week, but is otherwise leaving all other aspects of the Japanese central bank's policy framework unchanged.

Markets responded by hammering the Yen into the floorboards, with the JPY broadly selling off across the board.

AUD/JPY Technical Outlook

The Aussie-Yen pairing is largely frozen in place, trading within a tight 25-pip range for Monday's chart action as Aussie traders brace for the RBA. The AUD/JPY is testing on the high side, near 5-month highs and threatening a breakout into a new high for 2023 above 97.68, with 2022's yearly high nearby at 98.57.

The Aussie rallied nearly 2.7% from last week's opening bids near 94.80, closing in the green for five straight trading days and set for a sixth as long as the RBA meets or beats market expectations for early Tuesday's rate call.

AUD/JPY Hourly Chart

AUD/JPY Technical Levels