AUD/JPY: 78.40 is the level to beat for bears, all eyes on BOJ

• Dovish bets on RBA and pessimism surrounding rest of the globe flashed 4-week low.
• BOJ meeting with quarterly outlook report is in the spotlight for now.
• Sellers need to break 16-week long support-line to justify their strength.

AUD/JPY trades near 78.65 during early Thursday as traders await monetary policy meeting decisions from the Bank of Japan (BOJ).

The quote previously dropped to a month’s low as disappointments from CPI pushed Aussie investors toward expecting a rate-cut from the Reserve Bank of Australia (RBA) in the May month.

Speculations concerning RBA outweighed softer than forecast leading economic index figures from Japan.

Additionally, risk-off sentiment emanating from pessimism surrounding the EU, Canada and the UK also added strength into the Japanese Yen’s (JPY) safe-haven demand.

While Aussie holidays offer a soft start to the day, pair traders remain cautious ahead of the BOJ meeting.

The Japanese central bank isn’t expected to alter its present monetary policy but quarterly outlook report may downgrade inflation and growth forecasts.

AUD/JPY Technical Analysis

Unless breaking the ascending trend-line stretched from January 04, at 78.40 now, chances of the quote’s pullback moves to 79.00 can’t be denied. However, 79.60, 79.85 and 80.00 are likely consecutive upside barriers to follow afterward.

In a case where prices slid beneath 78.40, 77.90 and 77.55 should gain sellers’ attention while 77.30 and 77.00 may flash on their radars during the additional downturn.