• AUD/ JPY steadied around 98.54 on Thursday as traders looked ahead to Bank of Japan’s rate decision this week.
• The Bank of Japan is expected to raise interest rates on Friday, pushing short-term borrowing costs to their highest since the 2008 financial crisis..
• Swaps imply a 93% probability that the BOJ could hike its policy interest rate by 25 basis points to 0.5% but markets are finding its subsequent move harder to predict.
•At GMT 08.40, the pair was trading down 0.19 percent at 98.01.
• Immediate resistance is located at 98.40 ( 50% fib), any close above will push the pair towards 98.81 (Higher BB).
• Immediate support is seen at 97.44 (38.2% fib and break below could take the pair towards 96.59 (Lower BB).
Recommendation: Good to sell around 98.00, with stop loss of 98.80 and target price of 97.40
