AUD/JPY Price Forecast: Yen strength keeps 110.00 in sight
The Australian Dollar weakens versus the Japanese Yen as risk-appetite shifted sour due to the escalation of the US-Iran conflict, which has broadened to a fight between Yemen’s Houthis vs Saudi Arabia, who fight for control of the Red Sea. The AUD/JPY exchange rate is 110.53, down 0.27%.
The Australian Dollar continues to weaken against the Japanese Yen, as geopolitical tensions escalate between the US and Iran, leading to a broader conflict involving Yemen's Houthis and Saudi Arabia over control of the Red Sea. The AUD/JPY exchange rate stands at 110.53, down 0.27%. Currently, the rate is trading below the 200-day Simple Moving Average (SMA) at 110.88, indicating a prolonged bearish trend for four consecutive days since the last positive movement on September 4.
The heightened tensions have favored the Yen, while other currencies, apart from the US Dollar, have experienced pressure. The Relative Strength Index (RSI) remains bearish, suggesting a continued downside for AUD/JPY. The first support level for AUD/JPY is at 110.50, followed by the psychological level of 110.00. Further down are the March 31 daily low of 108.79 and the February 13 cycle low of 107.69.
Should AUD/JPY break above the 200-day SMA, it could reach the 111.00 mark in the near term. A breach of these levels would expose the 50-day SMA at 112.88, followed by the 100-day SMA at 113.09.
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