Chart - Courtesy Trading View
AUD/JPY was trading 1.53% higher on the day at 91.95 at around 06:40 GMT.
The pair has snapped a four-day bearish streak and spiked higher after upbeat Australia inflation reading.
Data released earlier today showed Australian inflation hit 20-year high, Consumer Price Index (CPI) accelerated 2.1% QoQ in Q1 vs. 1.7% expected and 1.3% previous.
While, the Trimmed Mean CPI rose to 1.4% vs. 1.2% expected and 1.0% seen in Q4 2021.
On the other side, broad weakness seen in yen as investors discount the likely neutral stance to be announced by the Bank of Japan (BOJ) on Thursday.
The central bank is is expected to continue with its ultra-loose monetary policy to support economic growth.
The BOJ could announce additional stimulus to support the aggregate demand and help return to the pre-Covid-19 levels.
The pair has been seeing some retrace from multi-year highs at 95.74 hit on April 20th trade. Retrace above 200H MA will see more upside.
20-DMA is strong resistance at 92.98, decisive break above will see upside resumption in the pair.
