AUD/JPY Price Forecast: Declines below 110.00, technical bias stays bearish

The AUD/JPY exchange rate is currently trading around 109.70, showing a negative trend in the early European session on Monday. The Australian Dollar has weakened against the Japanese Yen due to a significant drop in expectations of the Reserve Bank of Australia (RBA) raising interest rates in November, as indicated by the latest Consumer Price Index (CPI) data.

Analysts at MUFG/BTMU highlight the importance of BOJ Governor Ueda's speech and wage data in assessing the timing of the BOJ's next move, while emphasizing that underlying base-pay momentum remains firm, keeping the prospect of further monetary tightening alive. The pair remains bearish in the daily chart, with price holding below key moving averages and Bollinger bands, indicating a capped structure and potential downside momentum.

Brief written by urgent.news from FXStreet's own syndicated text. Machine-written — may contain errors; check the original before relying on it.