AUD/JPY Sinks as Bank of Japan Hike Expectations Rise

The Australian Dollar (AUD) weakened against the Japanese Yen (JPY) due to renewed expectations of a Bank of Japan rate hike.

This strengthened the yen and put downward pressure on the AUD/JPY pair, which is currently trading below its short- and medium-term moving averages.

The 20-day moving average stands at ¥113.63, while the 50-day moving average is at ¥113.10.

Bond yields in Japan have risen, attracting capital flows towards the yen, while diplomatic talks between the US and Japan focused on yen stability without confirming official intervention.