AUD/JPY Falls to Near 114.50 Amid Rising Inflation Expectations

The AUD/JPY cross drifted lower to near 114.50 in Monday's early European session, but still maintains its bullish tone above the 100-day SMA.

The Japanese Yen strengthened against the Australian Dollar as Japan's annual core Consumer Price Index (CPI) inflation in Tokyo rose for a third consecutive month in August.

This reinforced expectations that the Bank of Japan could raise interest rates as early as September, with BoJ Deputy Governor Ryozo Himino delivering hawkish remarks and highlighting growing inflation risks.