AUD/JPY retreats post RBA’s dovish hold

The AUD/JPY pair retreated below key support levels. If AUD/JPY buyers reclaim 97.00, a rally to 98.00 is on the cards.

The AUD/JPY began Wednesday’s Asian session with a negative tone after registering losses of more than 1% on Tuesday. This is courtesy of the Reserve Bank of Australia (RBA), which held rates unchanged, though market participants perceived the decision as a “dovish hold”.

So, the Australian dollar sellers exerted downward pressure on the currency. At the time of writing, the pair is exchanging hands at 96.36, down 0.02%.

Despite registering solid losses, the AUD/JPY remains neutral to upward bias, but downside risks are emerging.

On the flip side, in the outcome of the AUD/JPY reclaiming the 97.00 figure, buyers could regain control. The next spotted resistance level is at 97.40, and if the pair gains additional momentum, it could rally toward the 98.00 figure.