AUD/JPY crosses 91.00 in a single transaction as the BoJ maintains interest rates and the YCC;

The Bank of Japan (BoJ) has maintained its position on interest rate policy, which has resulted in sizable bids for the AUD/JPY pair.

The Japanese Yen has seen a significant sell-off as a result of BoJ Governor Haruhiko Kuroda’s support of the status quo.

In a single movement, the risk barometer has surpassed the crucial resistance level of 91.00.

The cross reached an intraday high over 91.30 at the time of publication.

The BoJ has maintained the interest rate at -0.1% and the target price for 10-year Japan Government Bonds (JGBs) at around 0%.

The market was already preparing for an unchanging monetary policy, but the lack of an upward adjustment to the inflation forecasts for CY2023 and 2024, as well as the lack of news on BoJ Kuroda’s replacement, led investors to sell Japanese Yen.

In the middle the bank has stated that it will maintain its large-scale JGB purchases and act quickly in response to each maturity.

BoJ’s quarterly outlook report, which was just released, also offers hints regarding potential next steps.

The reduction of the effects of the coronavirus epidemic on policy and supply limitations would likely aid in Japan’s economic recovery. If more easing is required, the central bank won’t think twice about doing so.

The release of the employment data for December will spur a power-pack movement for the Australian Dollar on the local front.

The unemployment rate is anticipated to stay constant at 3.4%, according to the consensus.

The Australian economy must have created 22.5K new jobs in the labor market in December, which is less than the previous increases of 64K.