The AUD/JPY currency pair traded in negative territory around 113.35 during early European hours on Friday, softening below the 113.50 level. This move was attributed to renewed fears of possible intervention by Japanese officials, which provided some support to the Japanese Yen against the Australian Dollar [1]. Japan’s Finance Minister Satsuki Katayama reiterated the possibility of intervention, stating, 'if it becomes necessary, we will take decisive action at any time.' This statement was made ahead of a holiday weekend in Japan, a period previously associated with late-night interventions [1].
Looking ahead, the Bank of Japan is scheduled to meet later this month after having raised interest rates to their highest level in three decades in June. While the central bank is anticipated to raise rates again before the end of the year, no move is expected at the upcoming July policy meeting [1].
From a technical perspective, the AUD/JPY pair maintains a constructive bullish bias, with the spot price trading above both the 100-day simple moving average (SMA) and the Bollinger Bands’ middle line. The Relative Strength Index (14) stands at 56.03, indicating positive momentum without overbought conditions, suggesting the upswing could continue as long as prices remain above key averages [1]. Immediate resistance is seen at the Bollinger upper band around 113.80, with the next hurdle at the May 13 high of 114.74. On the downside, support levels are identified at the 100-day SMA (112.70), the Bollinger middle band (112.45), and the lower band near 111.05 [1].
CONCLUSION
Renewed intervention rhetoric from Japanese officials has pressured AUD/JPY below 113.50, but the pair retains a bullish technical outlook. Market participants are watching for further signals from the Bank of Japan, though no rate move is expected in July. Key technical levels will likely guide near-term price action.