The AUD/JPY cross slipped to 110.75 during early European trading Thursday as the Japanese Yen gained strength against the Australian Dollar. The pair’s weakness comes as market participants increasingly anticipate an imminent interest rate hike from the Bank of Japan, supporting JPY across the board.
Technical signals indicate bearish momentum, with the cross trading below its 100-day simple moving average and losing ground beneath the 111.00 handle. This positioning suggests sellers maintain control in the near term. The move reflects broader shifts in interest rate expectations between the two central banks, with BoJ potentially tightening while the Reserve Bank of Australia faces different policy pressures.
Traders holding long AUD/JPY positions face mounting pressure as the pair consolidates losses. Currency strategists and Asia-Pacific focused brokers should monitor Japanese economic data and BoJ commentary closely for further directional cues on this cross.
FXnCO Insight
Traders should watch the 100-day SMA as a key resistance level, with downside momentum likely to persist while AUD/JPY remains below this technical threshold.
Source: FXStreet