AUD/JPY Price Forecast: Softens below 112.50 as near-term bearish bias persists below 100-day SMA
The AUD/JPY cross trades in negative territory near 112.35 during the early European session on Thursday. The Japanese Yen (JPY) edges higher against the Australian Dollar (AUD) as traders are on high alert for further intervention from authorities.
The AUD/JPY currency pair is currently trading near 112.35 and facing a near-term bearish bias, with price having slipped below both the 100-day and 20-period simple moving averages. This technical development adds to the prevailing sentiment of caution, especially as the Bank of Japan (BoJ) is considering further interest rate hikes due to rising inflation risks.
Analysts are cautious about the sustainability of the BoJ's intervention measures, which have become increasingly uncommon in recent years. While the pair remains above the Bollinger lower band, indicating that the broader uptrend has not been entirely undermined, a decisive break above the key resistance levels could open the way for a potential rally towards the July 16 high of 113.88.
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