Key Moments
- AUD/JPY retreats from the 110.65 resistance area, with sellers watching for a clean break below 110.00.
- Stronger Japanese Yen, supported by Bank of Japan tightening expectations and intervention risks, weighs on the cross.
- Bearish 4-hour technical setup, including MACD at -0.03 and RSI at 48.48, supports prospects for further downside.
Cross Under Pressure as Yen Gains Ground
The AUD/JPY pair comes under renewed selling pressure on Tuesday, extending its pullback from the 110.65 resistance region that capped advances the previous day. During the early European session, the cross drops to a new intraday low, with bearish participants now focused on a decisive move below the 110.00 psychological level before committing to additional downside positions.
Market participants remain cautious amid talk that Japanese authorities may intervene to support the domestic currency. At the same time, rising expectations for further policy tightening by the Bank of Japan (BoJ) provide additional support to the Japanese Yen (JPY). This strengthening of the JPY acts as a key headwind for the AUD/JPY cross.
On the other side of the pair, the Australian Dollar (AUD) draws some support from a modest pullback in the US Dollar (USD) from an 18-month high. This USD softness helps cushion the downside in AUD/JPY, limiting the extent of the decline for now.
Technical Outlook: Bearish Bias on the 4-Hour Chart
From a technical perspective, the intraday tone for AUD/JPY remains negative after the pair failed to sustain a move above the 100-period Simple Moving Average (SMA) on the 4-hour chart overnight. This rejection reinforces the short-term bearish setup for the cross.
The Moving Average Convergence Divergence (MACD) indicator stays below the zero line, with a negative reading of -0.03, signaling ongoing downside momentum. Meanwhile, the Relative Strength Index (RSI) stands at 48.48, a neutral level that suggests selling pressure is present but not yet stretched. Together, these signals support a cautious, bearish near-term view on AUD/JPY.
Key Levels: Support and Resistance Map
Further weakness would require sustained selling and confirmation of trading back below both the 23.6% Fibonacci retracement level and the 110.00 round figure. A clear break and acceptance beneath this zone would bolster the case for an extension toward the structural support at 108.73.
On the upside, the 100-period SMA at 110.58 represents the first area of resistance. Above that, the 38.2% Fibonacci retracement at 111.12 and the 200-period SMA at 111.42 form the next ceilings. If buyers push beyond these, additional resistance comes in at the 50.0% retracement level at 111.85 and the 61.8% retracement at 112.59. Higher still, the 78.6% retracement at 113.64 and the cycle high at 114.98 define a broader resistance cap for the cross.
Japanese Yen Performance Against Major Currencies
The table below shows the percentage change of the Japanese Yen (JPY) against major currencies today. According to the data, the Japanese Yen has been strongest versus the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.30% | -0.19% | -0.27% | -0.12% | -0.10% | -0.27% | -0.21% | |
| EUR | 0.30% | 0.10% | 0.02% | 0.18% | 0.17% | 0.03% | 0.09% | |
| GBP | 0.19% | -0.10% | -0.10% | 0.04% | 0.07% | -0.09% | -0.01% | |
| JPY | 0.27% | -0.02% | 0.10% | 0.15% | 0.16% | -0.01% | 0.07% | |
| CAD | 0.12% | -0.18% | -0.04% | -0.15% | 0.01% | -0.16% | -0.08% | |
| AUD | 0.10% | -0.17% | -0.07% | -0.16% | -0.01% | -0.16% | -0.10% | |
| NZD | 0.27% | -0.03% | 0.09% | 0.00% | 0.16% | 0.16% | 0.08% | |
| CHF | 0.21% | -0.09% | 0.00% | -0.07% | 0.08% | 0.10% | -0.08% |
The heat map reflects percentage moves of major currencies relative to each other. The base currency is taken from the left-hand column, and the quote currency from the top row. For instance, selecting Japanese Yen from the left column and moving across to the US Dollar cell shows the percentage change for JPY (base)/USD (quote).
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