AUD/JPY suffered its biggest-single drop in four weeks yesterday. AUD took a beating due to a below-forecast Aussie inflation number. BOJ policy exhaustion may put a bid under the Japanese yen. AUD/JPY is on the defensive, having dropped 1.02 percent yesterday – the biggest single-day loss since March 22. The currency pair is currently trading largely unchanged on the day at 78.65, having hit a low of 78.39 on Wednesday – a level last seen on March 29. The Aussie dollar was offered across the board yesterday after a below-forecast Australian first quarter consumer price inflation release boosted expectations of an interest rate cut in May. The Reserve Bank of Australia (RBA) moved away from its long-held tightening bias in February. Major investment banks have forecasted rate cuts in the second half of this year ever since. Focus on BOJ The Bank of Japan is widely expected to keep the key policy tools unchanged today. Japan’s Finance Minister Aso was out on the wires earlier this week calling the BOJ’s fight against deflation a mistake. Aso’s comments showed growing exhaustion over the unprecedented monetary stimulus in the upper echelons of the government. As a result, the central bank is unlikely to provide any dovish surprise. Kuroda and Co. will likely project the central bank as the one that has tools to do more if required. That, however, is unlikely to push JPY lower. In fact, markets may push JPY higher in response to policy exhaustion, bolstering the already bearish pressures around the AUD/JPY cross. The rate decision is due at 02:00 GMT. Technical Levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitfury and Final Frontier partner up to launch Bitcoin mining fund FX Street 4 years AUD/JPY suffered its biggest-single drop in four weeks yesterday. AUD took a beating due to a below-forecast Aussie inflation number. BOJ policy exhaustion may put a bid under the Japanese yen. AUD/JPY is on the defensive, having dropped 1.02 percent yesterday - the biggest single-day loss since March 22. The currency pair is currently trading largely unchanged on the day at 78.65, having hit a low of 78.39 on Wednesday - a level last seen on March 29. The Aussie dollar was offered across the board yesterday after a below-forecast Australian first quarter consumer price inflation… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.