AUD/JPY Dips Near 114.00 While Uptrend Stays Strong

Key Moments

Fundamental Drivers

AUD/JPY softened toward the 114.00 area in early European trading on Friday, as the cross came under pressure after recent gains. Concerns that Japanese authorities could intervene in foreign exchange markets helped underpin the Japanese Yen (JPY) against the Australian Dollar (AUD).

Japan’s Finance Minister Satsuki Katayama stated on Friday that officials are “always ready to react suitably as needed” in the foreign exchange market, comments that supported the perception of potential intervention and gave the JPY a lift.

Losses in the AUD, however, appeared constrained by expectations that the Reserve Bank of Australia (RBA) will maintain a firm stance against inflation. RBA Governor Michele Bullock reiterated on Thursday that the central bank remains strictly focused on bringing price pressures under control, following three interest rate increases earlier this year that lifted the cash rate to 4.35%. Bullock said that inflation is too high and that the board will “do what it considers necessary to achieve our mandate to deliver price stability and full employment.”

Technical Picture: Uptrend Still Dominant

On the daily chart, AUD/JPY continues to show a constructive near-term bias, trading comfortably above the 100-day simple moving average (SMA). This positioning keeps the broader upside trend intact despite the latest consolidation phase.

The pair is currently testing the middle line of the Bollinger bands as a resistance area, while the upper band remains above, capping further immediate upside. The 14-day Relative Strength Index near 52 is broadly neutral, indicating that recent momentum has cooled without signaling a trend reversal, leaving scope for renewed advances if resistance levels are cleared.

Key Levels to Watch

Immediate resistance on the topside is aligned with the upper Bollinger band around 114.80. A daily close above this level would shift focus toward the next psychological barrier at 115.00.

On the downside, initial intraday support is located near the current trading zone around 114.00. Below that, firmer support is seen at the lower Bollinger band near 113.20. A more pronounced decline would bring the 100-day SMA at 111.55 into view, an area where buyers are expected to defend the broader bullish structure.