AUD/JPY Bounces Above 110.50 Amid Risk Sentiment Shift

The AUD/JPY cross has rebounded above 110.50 after a period of selling pressure driven by shifting risk sentiment and divergent monetary policy expectations between the Reserve Bank of Australia and the Bank of Japan.

The Australian dollar found support as commodity prices stabilized and risk appetite improved in Asian trading, while the yen softened due to Japan's economic data pointing to continued accommodative policy.

However, the resistance zone between 110.80 and 111.20 has repeatedly rejected advances over the past week, limiting the pair's upside momentum.

A clear break above this zone would open the door toward the next psychological level at 112.00, but failure to overcome resistance could see the pair consolidate in a range.