The AUD/JPY currency pair attracted fresh buying interest after a modest dip to the 111.80 area during the Asian session on Tuesday, turning positive for the seventh consecutive day. Spot prices are currently trading around the 112.15-112.20 region, marking a daily gain of nearly 0.15% and holding marginally above the 100-day Exponential Moving Average (EMA) at 112.16, which provides immediate support for the pair [1].
The Japanese Yen continues to underperform following the Bank of Japan's unexpectedly dovish policy decision last Friday, while the Australian Dollar is supported by hawkish remarks from Reserve Bank of Australia Governor Michele Bullock. These diverging central bank signals have contributed to the AUD/JPY's upward momentum, although concerns about potential JPY intervention are tempering bullish bets [1].
Technically, the AUD/JPY remains capped beneath a dense Fibonacci resistance stack, with the 50.0% retracement at 112.34 and the 61.8% level at 112.96 acting as overhead supply zones. The Moving Average Convergence Divergence (MACD) indicator has turned positive and the Relative Strength Index (RSI) is at 52, suggesting modest recovering momentum but not a decisive trend shift. Further resistance is seen at 113.85 (78.6% retracement) and the cycle high near 114.99, while downside support levels include the 38.2% Fibo at 111.71 and the 23.6% retracement at 110.94, with a deeper slide exposing 109.68 [1].
Over the past seven days, the Japanese Yen has weakened against most major currencies, including a 1.05% decline versus the Australian Dollar. The Yen was strongest against the New Zealand Dollar during this period, but overall, its performance has been subdued, reflecting the impact of recent central bank actions [1].
CONCLUSION
AUD/JPY continues to benefit from diverging central bank signals, with the pair holding above key technical support and eyeing further resistance levels. While momentum indicators suggest modest recovery, caution is warranted due to overhead supply and intervention fears. The market takeaway is a cautiously constructive outlook for AUD/JPY, pending a decisive breakout above resistance.