FxWirePro: AUD/ JPY bearish bias remains as BOJ policy shape outlook

• AUD/JPY initially gained but gave  some ground as market digested  BOJ Governor Kazuo Ueda commets.

• Bank of Japan Governor Kazuo Ueda stated on Friday that the central bank must continue its loose monetary policy to help underlying inflation gradually move toward its 2% target.

• On the data front, core inflation in Japan's capital hit 2.5%, marking the fastest annual pace in nearly a year, comfortably exceeding the central bank's 2% target

•The technical outlook remains bearish and points to eventual bigger gains, fourteen-day momentum is negative, reinforcing the scope for a bigger drop.  

• Immediate resistance is located at 96.92(50% fib), any close above will push the pair towards 97.35 (Jan 29th high).

• Immediate support is seen at 95.67(38.2% fib) and break below could take the pair towards 95.09(Lower BB).

 Recommendation: Good to sell around 96.40, with stop loss of 97.00 and target price of 95.50