As the BOJ advocates a dovish position, AUD/JPY is attracting buying activity near 90.50

In the early Asian session, the AUD/JPY pair is anticipating a pause in the corrective move to roughly 90.50. Previously, the risk barometer declined progressively after failing to continue its ascent beyond the important resistance level of 91.00. As the continuing of the Bank of Japan's (BOJ) supportive attitude has sparked volatility in the Japanese yen, it is anticipated that the cross will experience a rebound move.

Meanwhile, the AUD/USD is exhibiting symptoms of losing its downward momentum, and the AUD/JPY is expected to follow suit.

As multiple nations impose Covid safety restrictions on Chinese tourists, the Australian Dollar is likely to see complex price fluctuations. After the easing of lockdown restrictions and rapid reopening of the economy, the incidence of covid infections in China has risen rapidly. Health officials in the United States stated that travelers from China will be required to undergo COVID-19 testing.

The Chinese economy has already eliminated traveler quarantine regulations. The hospital staff describes the current period as the busiest they have ever experienced, citing the sharp increase in Covid-19 cases. The purpose of the economy's reopening was to reduce supply chain interruptions; yet, it appears that the economy's rapid reopening has exacerbated supply chain bottlenecks.

As reported by Reuters, on the Tokyo front the BOJ clarified that the expansion of the yield band was intended to correct pricing distortions in 10-year Japanese Government Bonds (JGBs) and is not a prelude toward an exit from ultra-accommodative policy. This may result in greater yen depreciation in the future.