AUD/JPY rejected at 89.00 for 5th straight day

• Offered above 88.90 (76.4% Fib) and near 89.00 for the 5th straight day.
• Focus on Kuroda press conference.

For the fifth straight day, the AUD/JPY has failed to cut through 89.00 levels in a convincing manner.

AUD/JPY ran into offers at 89.07 earlier today and fell back to 88.46 levels. The bid tone around the Japanese Yen strengthened after the BOJ kept rates unchanged as expected, but slightly sounded more upbeat in price outlook.

"Inflation expectations are moving sideways recently",  the BOJ said in its quarterly report compared to the previous report, which talked about weak trend in inflation expectations. There was always a risk that a slight change in language on inflation will be taken as a sign that the BOJ has moved closer to the time of QE taper/great unwind.

As of writing, the pair is trading at the intraday low of 88.46. The exchange rate may dip further if Governor Kuroda's fails to convince the markets that the central bank is unlikely to move away from the ultra-easy monetary policy anytime soon.

AUD/JPY Technical Levels

A move below 88.38 (previous day's low) would open up downside towards 88.23 (10-day MA) and 87.97 (23.6% Fib R of Nov low - Jan high). On the other hand, a close above 88.90 (76.4% Fib R of Sep-Nov drop) could yield 89.68 (Sep. 25 high) and 90.00 (psychological hurdle).