AUD/JPY Maintains Bearish Bias Despite Recent Gains
The AUD/JPY cross is maintaining its strength above 110.50, but still holds a bearish bias below the 100-day SMA. The pair's price has risen to near 110.70 in Wednesday's early European session, with the Japanese Yen weakening against the Australian Dollar due to rising energy prices and Japan's oil-dependent economy.
The Bank of Japan is expected to announce a 25-basis-point interest rate hike at its upcoming policy meeting on Friday, which would be the highest borrowing costs for Japan since April 1995. Analysts expect the BoJ to deliver a pre-emptive hike as Japan's data and inflation risks firm.
According to OCBC Group Research analysts, 'We expect the BoJ to hike 25 bps at the upcoming meeting on 16-17 September.' Standard Chartered also expects the BoJ to raise the policy rate by '25bps to 1.25% at its 17-18 September meeting.'