The AUD/JPY currency pair lost traction and eased to around 114.00 during the early European session on Friday, influenced by concerns over potential currency intervention from Japanese authorities. Japan’s Finance Minister Satsuki Katayama stated that authorities are always ready to react suitably as needed on foreign exchange, which provided some support to the Japanese Yen against the Australian Dollar [1].
Despite this, the Australian Dollar’s downside was limited by a hawkish stance from the Reserve Bank of Australia (RBA). RBA Governor Michele Bullock emphasized that the central bank remains strictly focused on curbing inflation, referencing three interest rate hikes earlier this year that raised the cash rate to 4.35%. Bullock reiterated that inflation remains too high and the board will take necessary actions to achieve price stability and full employment [1].
From a technical perspective, AUD/JPY retains a bullish near-term bias as it continues to trade well above the 100-day simple moving average (SMA), maintaining the broader uptrend despite recent consolidation. The pair is currently testing the Bollinger band midline resistance, with the upper band at 114.80 acting as a cap for further gains. The Relative Strength Index (14) is around 52, indicating neutral momentum and the potential for further gains if resistance levels are breached. Immediate resistance is at 114.80, with a daily close above this level opening the door toward the 115.00 psychological mark. On the downside, initial support is near 114.00, with stronger support at 113.20 and the 100-day SMA at 111.55, where buyers are expected to defend the bullish structure [1].
CONCLUSION
The AUD/JPY pair is consolidating near 114.00, supported by intervention concerns from Japanese authorities and a hawkish RBA stance. Technical indicators suggest the broader bullish trend remains intact, with key resistance and support levels in focus for future price action.