AUD/JPY Consolidation Continues Amid Interest Rate Uncertainty
The AUD/JPY currency pair has been in a consolidation phase since April 2026, with traders looking for value opportunities. According to Christopher Lewis, a technical analyst at DailyForex, the Australian dollar is currently bouncing off the ¥110 level, which is also home to the 200-day EMA.
This area of support makes sense given the significant interest rate differential favoring Australia, particularly with the Reserve Bank of Australia (RBA) expected to raise rates in the future. However, the Bank of Japan's upcoming interest rate decision on Friday may have a bearing on the pair's direction.
Lewis notes that the ¥109 level being violated would be an indication of a potential downtrend, but at this point, it appears that traders are looking for value rather than aggressively selling. The AUD/JPY has been range-bound between ¥110 and ¥115, with the latter being the upper limit.