AUD/JPY - depressed despite widening yield differential

• AUD/JPY recovery struggles to gather traction. 
• AU-Japan 10-year yield spread rise to 11-month high. 

Wednesday's "long-tailed" doji candle has not yielded a corrective rally in AUD/JPY so far. 

The cross was last seen trading in a sideways manner around 84.30 levels, meaning the pair is still down 5.35 percent from the Jan. 23 high of 89.07.

Also, the decline from 89.07 to 84.00 contradicts the widening of the AU-Japan 10-year bond yield spread. As of writing, the spread stands at 283 points - the highest level since March 2017. 

Still, the recovery in AUD/JPY is struggling to gather traction. Moreover, Yen remains well bid on concerns of a hard landing in the US (due to fiscal profligacy and fears of faster Fed tightening). 

AUD/JPY Technical Levels

A break below 84.00 (zero level) could yield re-test of 83.73 (monthly 200-MA) and 83.32 (weekly low). On the other hand, a move above 84.42 (1-hour 50-MA) would open up upside towards 84.70 (1-hour 100-MA) and 85.11 (1-hour 200-MA).