AUD/JPY Tumbles Amid JPY Strength and RBA Rate Hike Uncertainty

The AUD/JPY cross has seen heavy selling pressure at the start of the week, touching its lowest level since late March around the 109.40-109.35 region.

Despite this, spot prices have defended a technically significant 200-day Simple Moving Average (SMA) and trade around the 110.00 psychological mark during the first half of the European session.

The Japanese Yen (JPY) has continued to outperform other currencies due to its relative strength on the back of a joint US-Japan FX intervention on Friday and hints of further action from the Bank of Japan's (BoJ).

Apart from this, diminishing odds of an immediate interest rate hike by the Reserve Bank of Australia (RBA) have undermined the Australian Dollar (AUD), weighing heavily on the AUD/JPY cross.