AUD/JPY - double bottom on charts?

AUD/JPY has twice rebounded today from 85.75 levels, thus forming a double bottom on the Intraday charts with neckline resistance around 86.09 levels.

BOJ a dud

Bank of Japan (BOJ) kept interest rates unchanged, revised GDP forecasts higher and extended loan program as expected. The bank also kept short-term and medium-term inflation forecasts unchanged, but revised the long-term inflation forecasts lower.

The Yen strengthened for a brief moment, but quickly surrendered the post-BOJ gains. Consequently, the cross recovered from 85.75 levels. The pair was last seen trading around 85.90 levels.

AUD/JPY Technical Levels

A break above 86.07 (double bottom neckline) would expose resistance lined up at 86.52 (Jan 25 high) and at 87.09 (Jan 27 high). On the other hand, a breakdown of support at 85.73 (previous day’s low) could yield a sell-off to 85.33 (Jan 23 low) and then to 85.13 (50-DMA).