AUD/JPY Plummets to March Lows as JPY Strengthens

The AUD/JPY currency pair has been under pressure, reaching its lowest level since March at around 109.40-109.35. Despite this, it found support near the 200-day Simple Moving Average (SMA) and currently trades around the 110.00 psychological mark.

The Japanese Yen's relative outperformance on the back of a joint US-Japan FX intervention and hints of further action from the Bank of Japan have weighed heavily on the AUD/JPY cross. The Reserve Bank of Australia's diminished odds of an immediate interest rate hike also undermined the Australian Dollar, making it more likely for the pair to move lower.

From a technical perspective, the breakdown through a nearly four-month-old trading range and the Moving Average Convergence Divergence (MACD) turning deeper into negative ground hint at lingering downside momentum. However, the daily Relative Strength Index (14) has slipped to oversold territory near 27, making it prudent to wait for a break below the 200-day SMA at 109.25 before positioning for further losses.