The AUD/JPY currency pair traded in positive territory around 111.75 during early European trading hours on Friday, with the Australian Dollar strengthening against the Japanese Yen following the release of Chinese economic data. Specifically, China's Services Purchasing Managers' Index (PMI) eased slightly to 54.1 in June from 54.4 in May, but this still represented the third-steepest increase in services activity in nearly three years. Additionally, services exports grew for a second consecutive month, expanding at the fastest rate since October 2024 [1].
Despite these positive data points, the potential upside for AUD/JPY may be limited due to concerns about possible intervention from Japanese authorities. Japan’s Finance Minister Satsuki Katayama stated on Friday that officials are ready to act appropriately on currency fluctuations, signaling a willingness to intervene if necessary [1].
From a technical perspective, AUD/JPY remains below a dense support band defined by the 100-day Moving Average and the middle Bollinger simple moving average, indicating a bearish bias in the near term. The Relative Strength Index (14) is just above 40, suggesting subdued bullish conviction without reaching oversold territory. Initial support is seen near the lower Bollinger Band at 111.15, while a daily close above the 100-day MA at 112.40 and the Bollinger midline at 112.42 would be needed to ease bearish pressure and potentially trigger a more sustained recovery [1].
Market participants are closely watching for any signs of intervention from Japanese authorities, as well as further developments in Chinese economic data, which have been influencing the AUD/JPY cross. No explicit analyst opinions or forward-looking statements beyond the technical outlook and official comments were provided in the source [1].
CONCLUSION
AUD/JPY is holding near 112.00, supported by positive Chinese services data but constrained by technical resistance and the threat of Japanese intervention. The market remains cautious, with the pair's direction hinging on further official actions and technical developments.