AUD/JPY rebounds sharply above 86.00 on BOJ bond-buying

A fresh bout of JPY selling across the board over the last hour, propelling a sharp pull back in the AUD/JPY cross, with the bulls now looking to regain 86.50 barrier.

AUD/JPY: Bulls guard 85.70 levels.

The cross found fresh bids once again near 85.70 region and staged a rebound, in an immediate reaction to the latest BOJ headlines, citing that the Japanese central bank stepped up bond purchases by 50 billion yen today.

Yen crosses spike after BOJ announces increase in bond buying

Meanwhile, further upside lacks follow-through, as the AUD/USD pair remains better offered amid a slump in the Australian stocks, with the ASX 200 down -1.30% to 5,685 points, led a heavy sell-off in the banking and energy sector stocks.

Attention now towards the key US labour market report, which will provide fresh trading impetus in the day ahead.

Technical Levels

Higher side: 86.32 (Jul 6 high), 87 (Intermittent tops), 87.50 (psychological levels)

Lower side: 85.73 (Jul 6 & 7 low), 85.23 (20-DMA), 84.76 (200-DMA)