AUD/JPY Price Forecast: Declines below 110.50 as bearish bias persists below 100-day SMA
The AUD/JPY cross trades in negative territory around 110.35 during the early European session on Monday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) as hawkish language may reinforce expectations that the Bank of Japan (BoJ) will raise interest rates this year.
During the early European trading session on Monday, the AUD/JPY cross traded at a negative rate of approximately 110.35. The Japanese Yen (JPY) has strengthened against the Australian Dollar (AUD) due to hawkish comments that may suggest the Bank of Japan (BoJ) will raise interest rates this year. Most economists surveyed by Reuters believe the BoJ will maintain interest rates at its October policy meeting on Friday, with a possible quarter-point increase at the December meeting.
Naomi Muguruma, chief bond strategist at Mitsubishi UFJ Morgan Stanley Securities, noted that the BoJ will closely monitor upcoming data and market movements to decide whether to raise rates in December or hold until January. Meanwhile, the Reserve Bank of Australia (RBA) Chief Economist Sarah Hunter warned that interest rates might need to rise again, as inflation remains high and recent overseas price pressures could become entrenched in the Australian economy.
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