FXStreet (Mumbai) - The AUD/JPY cross remains relentlessly sold-off as we progress towards the European morning trades, after Australia's CPI miss triggered massive sell-off in the AUD/USD pair. AUD/JPY cracks through 86 handle Currently, the AUD/JPY pair drops -1.03% to 85.73, recovering slightly from fresh three-week lows reached at 85.64. The AUD/JPY cross now attempts an anaemic recovery, having found fresh bids near 50-DMA located at 85.65. However, the bearish pressures remain intact on the cross as the Australian dollar remains heavily offered across the board as poor Aus inflation report sparked renewed expectations over RBA rate cut next month. While the yen remains muted versus the US dollar, having negligible impact on the pair. Australia’s trimmed mean CPI q/q came in at 0.3% versus 0.5% expectations and 0.6% previous. While the CPI q/q dropped to 0.5% versus 0.7% expectations. The focus now shifts towards the main highlight of today’s trading session, the FOMC statement, which may provide fresh momentum across the FX board. AUD/JPY Technical Levels To the upside, the next resistance is located at 86.11 (1h 10-SMA) and above which it could extend gains to 86.92 (10-DMA). To the downside immediate support might be located 85.51 (daily S2) below that at 85.11/85 (Oct 6 low + round number). For more information, read our latest forex news.