AUD/JPY Tumbles Below 112.50 Amid Risk Appetite Deterioration

The AUD/JPY cross has weakened to around 112.50 during Thursday's Asian trading session, extending its bearish bias as risk sentiment deteriorated.

This decline is primarily driven by the contrasting monetary policy stances of the Reserve Bank of Australia (RBA) and the Bank of Japan (BoJ). The RBA is seen as likely to cut rates, while the BoJ is normalizing policy, strengthening the yen relative to the Australian dollar.

The pair has broken below key support levels, with technical indicators pointing to sustained downside momentum. The 14-day Relative Strength Index (RSI) remains in bearish territory, suggesting that sellers are in control.

For traders and investors, the bearish outlook suggests that any rallies toward 113.00 could be seen as selling opportunities, while a break below 112.00 would confirm further downside.