AUD/JPY Tumbles on Stronger Yen and Intervention Risk
The AUD/JPY pair declined to around 111.10 in early European trading on Friday, as the yen strengthened and investors remained cautious about possible currency intervention by Japan's authorities.
The Bank of Japan raised its policy rate to 1.25% last week, while signaling openness to further tightening, including a potential back-to-back move in October. Two officials dissented from this decision, which was seen as less hawkish than some had expected.
Meanwhile, markets are pricing a 25-basis-point Reserve Bank of Australia hike next week, and the modest uptick in unemployment on Thursday has not shifted that view. The cross retains a bearish bias below its 100-day simple moving average and the Bollinger middle band, with resistance at 111.70 and support at 110.00.