AUD/JPY Tumbles Below 112.50 as Bearish Sentiment Grips Markets

The AUD/JPY cross has continued its downward trend, falling below the 112.50 level during Tuesday's Asian trading session.

This move extends the pair's recent decline and reinforces the bearish sentiment among short-term traders.

The Australian dollar has come under pressure due to market participants adjusting their expectations for the Reserve Bank of Australia's policy path, with softer employment figures and a moderation in inflation leading traders to price in a higher probability of an RBA rate cut.

The Japanese yen, on the other hand, has found support from safe-haven flows amid ongoing global growth concerns and geopolitical uncertainties, as well as from the Bank of Japan's cautious stance on further policy normalization.