AUD/JPY Price Forecast: Recovers above 110.50, but technical outlook stays bearish
The AUD/JPY cross trades in positive territory around 110.85, snapping the four-day losing streak during the early European session on Monday.
The AUD/JPY currency pair is currently trading at 110.85, marking a break from a four-day losing streak. The Australian Dollar (AUD) has been strengthening due to persistently high inflation, which has led to a more hawkish stance from the Reserve Bank of Australia (RBA). The RBA is expected to raise the Official Cash Rate (OCR) to 4.60% in the upcoming meeting, marking the fourth increase in 2026 and the highest level since 2011.
This outlook has increased the likelihood of two consecutive rate hikes in September and November, according to ANZ analysts.
However, the technical outlook for AUD/JPY remains bearish. The currency pair is trading below the 100-day simple moving average (SMA) and the Bollinger middle band, indicating potential downward momentum. The next key resistance level is at 111.45, followed by the September 22 high of 112.22 and the 100-day SMA around 112.80. If this level is breached, the next major resistance could be found at the Bollinger upper band near 113.70.
On the downside, the critical support level is at the psychological 100.00 mark, with further support at the lower Bollinger band at 109.25.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
