AUD/JPY Weakens Near 111.00 Under 100-Day SMA Resistance

Key Moments

AUD/JPY Slides Toward 111.00 as Technical Indicators Signal Persistent Weakness

The Australian Dollar (AUD) maintains its defensive stance against the Japanese Yen (JPY) on Friday, with AUD/JPY weakening toward the 111.00 handle during European hours. The technical outlook for the cross remains tilted to the downside as price action stays constrained below the 100-day Simple Moving Average (SMA) near 112.30. Intraday recovery attempts continue to attract selling interest as broader market sentiment leans cautious.

Hawkish BoJ Pricing and Risk-Off Tone Favor Japanese Yen Strength

Underpinning the weakness in AUD/JPY is ongoing support for the Japanese Yen, driven by elevated market expectations that the Bank of Japan (BoJ) will maintain a gradual tightening trajectory. Conversely, the Australian Dollar faces headwinds from mixed commodity performance and broader risk-off flows across Asian and European equity markets, leaving the high-beta currency vulnerable against traditional funding currencies.

Technical Roadmap: Key Levels to Watch for AUD/JPY

From a technical perspective, a decisive daily close below the 111.00 support level could accelerate selling pressure toward the 110.00 psychological boundary, followed by the mid-September low near 109.65. On the upside, immediate resistance is aligned at 111.70, with stronger technical barriers clustered at the 100-day SMA near 112.30. A sustained break above 112.30 would be required to invalidate the current bearish structure and shift momentum back to neutral.