⚡ AUD/JPY Price Forecast: Gains ground to near 112.50, uptrend holds above 100-day SMA

**FXnCO BREAKING NEWS**

The AUD/JPY cross is climbing toward 112.50 in early European trading Thursday, maintaining its upward trajectory above the 100-day simple moving average. The pair is trading around 112.40, driven primarily by the Reserve Bank of Australia’s hawkish monetary policy positioning, which continues to provide support for the Australian dollar against the Japanese yen.

Technical indicators confirm the bullish momentum remains intact as the cross holds comfortably above the key 100-day SMA support level, suggesting buyers maintain control of the near-term trend. The RBA’s relatively aggressive stance on interest rates compared to the Bank of Japan’s ultra-loose policy is widening the yield differential between the two currencies, creating favorable conditions for AUD strength.

Traders focusing on carry trade strategies and those with exposure to Asia-Pacific currency pairs should monitor this level closely as a sustained break above 112.50 could signal further upside potential.

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FXnCO Insight

** Long AUD/JPY positions remain favorable while price holds above the 100-day SMA, with 112.50 representing the immediate resistance level to watch for continuation signals.

Source: FXStreet