Despite the dovish BOJ minutes, the AUD/JPY encounters obstacles at 95

The early hours of the Tokyo session saw the AUD/JPY pair present a downward breach of the minute consolidation formed in a range of 94.97-95.18. As a result, the pair is now falling. The asset has generally held up well, and this little decline can be attributed to market participants "taking gains." Since the Bank of Japan (BOJ(released) )'s dovish minutes from its monetary policy meeting in June, the risk barometer has decreased.

The BOJ Governor Haruhiko Kuroda kept the same interest rate policy last week, so investors should be mindful of this. In order to keep an inflation rate above the desired threshold, the BOJ kept its ultra-loose monetary policy in place. Its unwillingness to raise pay rates is becoming a significant barrier, though, and inflation rates higher than 2% are rarely justified by rising energy and food prices. In addition, the BOJ announced that it will continue to buy an unlimited number of bonds in order to maintain its bond yield cap.

Investors are eagerly awaiting the release of Australian Bureau of Statistics' inflation statistics on Wednesday in the aussie market. The predicted increase in the overall Consumer Price Index (CPI) for the second quarter of CY2022 is 6.2 percent, up from the previously estimated 5.1 percent. The Reserve Bank of Australia (RBA) will be forced by this to increase interest rates even further in its monetary policy for August. Following a 50 basis point (bps) hike in July, Governor Philip Lowe of the RBA has already increased the Official Cash Rate (OCR) to 1.35 percent.