AUD/JPY halts decline near 85.50, consolidates in Tokyo

• AUD/JPY down as traders keep one foot in safer assets, but trading flat in Asia.
• RBA gov Lowe to speak at A50 summit today, RBA policy statement tomorrow.

AUD/JPY is consolidating in Tokyo markets, trading very near 85.50.

The Aussie lost ground to the Yen yesterday in a continuation of the bearish pressure on the AUD lately; AUD/JPY has declined almost 4% from January's high of 89.06, and future prospects don't look good for the pair as the Yen continues to maintain top spot in the safe haven category. With inflation fears on the rise, and bond yields spiking, risk assets are going to be prone to shocks like the one equities markets experienced recently, with indexes tumbling last Friday and at points throughout the week.

the RBA's Governor Philip Lowe will be giving a speech on Friday at the Australian A50 Economic Forum, starting around 09:00 GMT. Dovish sentiments from the central bank's head could send the AUD drifting ahead of the RBA's full-on Monetary Policy Statement, on Friday at 00:30.

AUD/JPY Technicals

The AUD/JPY chart is slim pickings for intraday traders, with support at 85.30 and resistance at 85.84. Daily charts show price testing the rising trendline between 85.20 and 85.40, with price currently soft underneath the 200-day SMA.

Today's pivot points:
R2: 87.20
R1: 86.34
PP: 85.88
S1: 85.02
S2: 84.56