AUD/JPY Weakens Below 100-Day SMA

The AUD/JPY cross has weakened to around 112.35 in Thursday's early European session, with the Japanese Yen edging higher against the Australian Dollar.

The negative outlook for the cross remains intact in the near term as it trades below the 100-day SMA.

According to Goldman Sachs Research strategist Karen Fishman, 'the JPY's gains are now fading as the intervention is not a sustainable fix ... ultimately just buys some time.'

The Bank of Japan has highlighted growing risks of accelerating inflation, with one board member suggesting that the pace of interest rate hikes could accelerate.