AUD/JPY Rangebound as Interest Rates Take Center Stage

The AUD/JPY pair is currently navigating its longer-term range, as traders capitalize on swap opportunities.

During Tuesday's early session, the Australian dollar has been experiencing choppy movements against the Japanese yen, with a challenge to the ¥112 level and the 50-day EMA. The currency pair sits in the middle of its overall consolidation range between ¥110 and ¥115.

The 200-day EMA is currently positioned at the ¥110 level, indicating potential support for the AUD/JPY pair. Interest rates remain a crucial factor, with the Australian dollar potentially continuing to rise due to the Reserve Bank of Australia's concerns about energy inflation.

Despite occasional interventions by the Bank of Japan, the AUD/JPY pair has not broken down against the yen. This suggests that the market still has significant buoyancy. Short-term pullbacks are seen as buying opportunities, provided the ¥110 level remains intact.