Key Moments
- AUD/JPY traded around 111.75 in early European hours on Friday, retaining modest intraday gains.
- The pair remained below key daily moving averages, with the Relative Strength Index (14) hovering just above 40.
- Initial support was identified near 111.15, while bulls faced immediate resistance around 112.40-112.42.
Pair Edges Higher After Chinese Services Data
The AUD/JPY cross traded slightly higher around 111.75 during early European trading on Friday, with the Australian Dollar (AUD) gaining ground against the Japanese Yen (JPY) following the release of Chinese economic figures.
China’s Services Purchasing Managers’ Index (PMI) eased to 54.1 in June from 54.4 in May, according to RatingDog on Friday. Despite the marginal decline, the reading still represented the third-strongest expansion in services activity in nearly three years. Services exports increased for a second straight month, advancing at the fastest pace since October 2024.
Intervention Risk Weighs on Yen Dynamics
Upside potential for the cross appeared constrained by concerns that Japanese authorities could intervene in the currency market. Japan’s Finance Minister Satsuki Katayama said on Friday that officials are ready to act appropriately on currency fluctuations.
Technical Setup: Bias Still Tilted to the Downside
On the daily chart, AUD/JPY remained under a substantial resistance zone formed by the 100-day Moving Average (MA) and the middle Bollinger simple moving average, signaling that the broader trend still pointed lower in the near term. The Relative Strength Index (14) hovered just above the 40 level, indicating weak bullish momentum and staying comfortably away from oversold territory.
To the downside, initial support was seen around the lower Bollinger Band near 111.15, an area where selling pressure could slow before any deeper pullback develops. On the upside, buyers would need a daily close above the 100-day MA at 112.40 and the Bollinger midline at 112.42 to alleviate the prevailing bearish bias and potentially reopen the path toward the upper end of the recent consolidation range.
| Level | Price | Comment |
|---|---|---|
| Initial Support | 111.15 | Near lower Bollinger Band |
| Key Resistance 1 | 112.40 | 100-day Moving Average |
| Key Resistance 2 | 112.42 | Bollinger middle line |
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