AUD/JPY jumps above 77.00, 10-yr JGB yield rises to 0%

Yen is being offered across the board after Bank of Japan (BOJ) kept rates unchanged while introduces yield curve control along with QQE program.

The AUD/JPY pair was last seen trading around 77.30 levels. The initial reaction to unchanged interest rates was a spike in Yen, courtesy of which the cross had a re look at 76.80 levels before jumping higher to 77.40 levels.

BOJ made yield curve control a centrepiece of its new policy framework and that pushed the 10-year Japanese government bond (JGB) yield above 0% for the first time since March.

AUD/JPY Technical Levels

Acceptance above 77.42 (Sep 14 high) could yield a rally to 78.00 (zero figure), above which the cross may target 78.33 (Sep 9 high). On the lower side, breach of support at 76.83 (5-DMA) would expose 76.35 (daily low), under which the cross could test demand around 75.59 (June 16 low).