AUD/JPY Price Forecast: Holds gains near 111.00, but maintains bearish tone below 100-day SMA
The AUD/JPY cross trades in positive territory around 110.90 during the early European trading hours on Monday. Growing expectations for an imminent interest rate hike from the RBA provide some support to the Australian Dollar (AUD) against the Japanese Yen (JPY).
The AUD/JPY currency pair opens near 110.90 on Monday, buoyed by expectations of an upcoming interest rate increase from the Reserve Bank of Australia (RBA). Analysts predict that the RBA may raise the Official Cash Rate (OCR) by 25 basis points for the fifth time this year, setting the OCR at 4.85%. However, Japanese authorities may intervene in the currency markets, which could weaken the Japanese Yen and limit the upside for the AUD/JPY pair.
The 100-day Simple Moving Average (SMA) remains below the current price, indicating a mildly bearish trend. Traders monitor the Bollinger Bands, with the price currently trading above the middle band but facing resistance near the upper band at 111.45. A close above this level would suggest a potential reversal in the short-term bullish bias, with the next resistance at the August 18 high of 113.61.
Conversely, a drop below the middle Bollinger band at 110.50 could open the path for a more pronounced downtrend, touching the psychological 110.00 level.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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