AUD/JPY: markets await BoJ outcome after reversing freak yen bids

AUD/JPY is currently consolidated while markets await for the BoJ.

AUD/JPY dumped on the freak move that came across all Yen pairs without a story and still a mystery and surely frustrating to all those that had placed stops overnight ahead of what is expected to be a very dovish outcome from the BoJ.

BoJ preview - what to expect in USD/JPY?

Meanwhile, we await the RBA next week. The RBA has been expected to cut rates of late but the weakness in the greenback and the recent CPI may have put a pause to such intentions for the time being, although the risks, that the Fed do not seem to acknowledge, elsewhere globally could be something that forces the hand of the RBA. However, "Australia’s Q2 inflation data wasn’t the game-changer for the RBA and Aussie dollar that Q1 was but reinforced the weakness of price pressures in the economy," explained analysts at Westpac who feel the RBa will cut rates. 

AUD/JPY levels

AUD/JPY penetrated the 78 handle with ease in thin liquidity marking 77.58 before reversing back to square one. 79.32 is where the 200 sma lies on the 1hr sticks and a break of 79.20 opens 80.50 and 81.50 on the upside. the 200 dma stands at 82.93.