AUD/JPY Price Analysis: Bounces off seven-week low as BoJ defies YCC tweak hopes but stays pressured

• AUD/JPY takes a U-turn from the multi-day low after BoJ keeps monetary policy unchanged.
• BoJ not only defend interest rates but also turns down market’s expectations of YCC tweak.
• Key support break, bearish MACD signals keep AUD/JPY bears hopeful below 94.00.
• Convergence of 100-DMA, 200-DMA and 50% Fibonacci retracement eyed during further downside.

AUD/JPY offered a stark reaction to the Bank of Japan’s (BoJ) inaction before resuming the original bearish move to around 93.00 amid early Friday. That said, the Bank of Japan (BoJ) left its monetary policy unchanged despite the market’s expectations of witnessing a tweak to the Yield Curve Control (YCC) policy.

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Technically, the AUD/JPY pair’s sustained trading beneath the previous support line stretched from late March joins bearish MACD signals to keep the sellers hopeful.

However, a horizontal support zone comprising multiple levels marked since early May, around 92.45-40, restricts the immediate downside of the pair.

Even if the quote breaks the 92.40 support area, the 200-day Exponential Moving Average (EMA) will join the 100-EMA and the 50% Fibonacci retracement of its March-June upside to highlight 91.95-90 as the key downside support for the bears to watch.

Alternatively, recovery remains elusive below the support-turned-resistance line, around 93.90 by the press time.

Following that, the 23.6% Fibonacci retracement level surrounding 95.00 and a five-week-old falling resistance line, close to 95.70 at the latest, will test the AUD/JPY bulls before giving them control.

AUD/JPY: Daily chart

Trend: Further downside expected