The AUD/JPY currency pair strengthened to approximately 112.70 during the early European session on Wednesday, maintaining a mildly bullish bias above the 112.50 level [1]. This move comes despite renewed geopolitical tensions, as the US launched 'powerful' strikes on Iran in response to attacks on three oil tankers in the Strait of Hormuz. According to US Central Command (Centcom), over 80 targets were hit, including more than 60 Islamic Revolutionary Guard Corps (IRGC) small boats in the strait [1].
Technical analysis indicates that AUD/JPY remains above both the 100-day moving average (MA) and the middle band of the Bollinger Bands (20), suggesting the broader trend is supported following a recent rebound. The Relative Strength Index (RSI) at 14 stands around 51, indicating neutral-to-mildly positive momentum rather than an overstretched rally [1]. Immediate technical support is found at the 100-day MA (112.50) and the Bollinger middle band (112.43), forming a demand zone. A daily close below this area could expose the lower Bollinger band at 111.15. On the upside, resistance is seen at the June 16 high of 113.55 and the upper Bollinger band at 113.70 [1].
Despite the current upward movement, the article notes that fears of possible intervention by Japanese authorities and ongoing US-Iran tensions could support the Japanese Yen and potentially cap further gains for the AUD/JPY cross [1]. No specific market reactions or analyst forecasts are provided beyond the technical outlook.
CONCLUSION
AUD/JPY is trading with a mildly bullish bias above 112.50, supported by technical factors but facing potential headwinds from geopolitical tensions and intervention risks. The market remains cautious, with key support and resistance levels clearly defined. No explicit analyst forecasts or market reactions are mentioned in the source.