AUD/JPY Strengthens Above 113.50 Amid Bullish Momentum and Revised BoJ Forecast

The AUD/JPY exchange rate has been showing signs of strength in recent sessions, climbing to around 113.55 during the early European session on Friday.

This bullish momentum is being driven by the Australian Dollar's (AUD) resilience against the Japanese Yen (JPY), despite a weaker labor market and unexpectedly low employment numbers for July.

Australia's unemployment rate ticked up to 4.5% in July, while employment fell by 15,800 jobs, disappointing markets that had expected a rise of 15,000.

This data has led investors to scale back expectations for further aggressive interest rate hikes from the Reserve Bank of Australia (RBA).

Standard Chartered analysts have revised their forecast for the Bank of Japan's next policy move, now expecting a 25bps hike on September 18, bringing forward their previous estimate.