AUD/JPY Price Forecast: Weakens to near 110.00, keeping bearish bias below 100-day SMA
The AUD/JPY cross trades in negative territory around 110.10 during the early European trading hours on Friday.
The AUD/JPY currency pair experienced a slight decline during the early European trading hours on Friday, trading around 110.10. This decline was attributed to Japan's National Consumer Price Index (CPI) inflation surpassing the Bank of Japan's target for the first time in nine months, which in turn supported the expectation of an interest rate hike in December.
Japan's National CPI rose by 2.1% year-on-year in September, showing a significant increase from 1.9% in August. The core CPI, which excludes volatile fresh food and fuel costs, also increased by 2.1% year-on-year in September, aligning with the forecast. Market analysts expect the Bank of Japan (BoJ) to maintain a neutral stance, with a rate hold for the upcoming week and a potential quarter-point hike in December.
Standard Chartered forecasts a gradual normalization in the BoJ's monetary policy towards the end of 2027. The daily chart shows AUD/JPY holding below the 100-day simple moving average, reinforcing a bearish short-term trend.
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