AUD/JPY Slips but Holds Above Key Support Level

The AUD/JPY exchange rate has slipped toward the 114.50 region but remains above its key technical support level, the 100-day simple moving average (SMA). This indicates a bullish bias in the market, suggesting that even though the pair has pulled back from recent highs, it is likely to continue its upward trajectory.

The AUD/JPY cross is sensitive to shifts in risk sentiment and monetary policy divergence between central banks. Recent comments from BoJ officials hinting at potential policy normalization have strengthened the yen, while a pullback in iron ore prices and cautious equity market sentiment have weighed on the Australian dollar.

Technical indicators suggest that the pair has repeatedly bounced from the 100-day SMA during its current uptrend, making it a key level to watch. Immediate support is seen at 114.50, followed by the 100-day SMA near 114.20, while resistance lies at 115.50 and a more significant barrier at 116.00.