Ella 
AUD/JPY fell further to around 93.80 on Wednesday
Bank of Japan policymakers say Japan’s current situation is critical to maintaining accommodative policy.
AUD/JPY within a downtrend channel on the 4-hour chart
Short-term resistance at 95.50; initial support at 93.30
Entering the European session on Wednesday, AUD/JPY fell for the second consecutive day. The cross is currently trading around 93.80, down 1.03% on the day. The Aussie faced some follow-through selling following the release of the RBA rate decision and the Bank of Japan meeting minutes.
RBA board members decided to keep interest rates unchanged at 4.10% after Tuesday’s monetary policy meeting. On the other hand, the Bank of Japan surprised financial markets by making its yield curve control (YCC) more flexible. The Bank of Japan will allow the 10-year JGB yield to rise above the limit as long as it stays below 1.0 percent rather than being held back at 0.5 percent. In addition, Shinichi Uchida, deputy governor of the Bank of Japan, said in Asia on Wednesday that Japan’s current situation is crucial to maintaining accommodative policy.
According to the 4-hour chart, AUD/JPY is in a descending channel since mid-June. However, the path of least resistance is to the downside as the cross holds below the 50 and 100 hourly EMAs. The RSI is in the bearish zone, currently supporting the bears.
Short-term resistance is at the top of the descending channel and the August 1 high of 95.50. Further resistance lies at 96.85 (July 4th high) and 97.60 (yearly high).
On the other hand, initial support is at 93.30 (July 12 low), with next supports at 92.60 (July 28 low) and 92.40 (bottom of the descending channel). A break below that level would see the pair fall to the June 6 low of 92.16.
