Key Moments
- AUD/JPY trades around 113.25 in early European hours, holding in positive territory above 113.00.
- The cross maintains a bullish technical bias while remaining above the 100-day simple moving average at 112.65.
- Key resistance levels are seen near 113.55 and at the May 14 peak of 114.66, with support clustered between 112.35 and 111.15.
Cross Supported as Yen Eases on Policy Headlines
The AUD/JPY pair is trading higher around 113.25 during early European dealings on Wednesday, with the cross holding in positive territory above the 113.00 mark. The Japanese Yen (JPY) is weakening against the Australian Dollar (AUD) following reports linked to the Government Pension Investment Fund (GPIF).
Finance Minister Satsuki Katayama said on Tuesday that the government is considering nudging the world’s largest pension fund to buy domestic financial assets to support the currency, though concrete plans have yet to materialize. Market participants remain alert to the risk of direct action from Japanese authorities, which could limit further upside in AUD/JPY.
Technical Overview: Uptrend Remains Intact
On the daily chart, AUD/JPY continues to show a constructive bullish setup, with price action trading above the 100-day simple moving average (SMA) and the 20-day Bollinger middle band. This configuration keeps the broader upward trend in place.
The Relative Strength Index (RSI) stands at 56.23, indicating positive momentum without reaching overbought territory. This suggests that buying interest is still supportive, while not yet signaling excessive upside exhaustion.
Key Levels to Watch
Market focus is centered on nearby resistance and support zones as the cross consolidates its latest gains.
| Level Type | Indicator / Reference | Price |
|---|---|---|
| Immediate resistance | Upper Bollinger band | 113.55 |
| Next resistance | May 14 high | 114.66 |
| First support | 100-day SMA | 112.65 |
| Secondary support | Bollinger midline | 112.35 |
| Deeper support | Lower Bollinger band | 111.15 |
On the upside, the next significant cap is the upper Bollinger band near 113.55, where the current advance could begin to attract profit-taking. A further barrier is seen at the May 14 high of 114.66.
On the downside, initial support is aligned with the 100-day SMA at 112.65, followed by the 20-day Bollinger middle band around 112.35. A more substantial pullback would likely find additional demand near the lower Bollinger band, located around 111.15.
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