AUD/JPY down in Tokyo, eyes on 87.70

• AUD/JPY regained in New York before continuing to falter.
• Yen continues to gain strength despite increases in BoJ bond purchases.

AUD/JPY continues its recent back-and-forth, down in Tokyo and breaking below 87.80 in early trading after gaining during New York. 

The Aussie has been the big loser this week, falling against its peers through most of the week as confidence in Australia's economy weakens amidst mixed data, which will weigh heavily on the RBA, pushing out expectations of rate hikes from Australia's central bank anytime soon. 

The Yen finds itself in an entirely different boat. The Japaneses currency has continued to be lifted in global markets as speculators continue to pile into the Yen as traders anticipate early tapering from the BoJ, despite continued and often repeated rhetoric from central bankers stressing that the BoJ will not make a move to tighten until inflation is healthier than it currently is. Markets have continued unabated, even as BoJ operations continue to include increased purchases of government bonds to nudge inflation higher.

There is little left on the economic calendar to provide volatility to currencies west of the Pacific, but US Non-Farm Payrolls at 13:30 GMT promises to thump markets, and provide some knock-on tradability for Asia-based pairs.

AUD/JPY technicals

With the recent swings in the AUD/JPY price, nearest swing support/resistance lies at 87.99 and yesterday's low of 87.49. Pattern traders on H4 charts will notice a descending pennant promises decent action should price break to the downside.

today's pivot points:
R2: 88.49
R1: 88.22
PP: 87.85
S1: 87.59
S2: 87.22