The currency pair climbs as risk sentiment improves amid potential US-Iran de-escalation, with technicals favoring bulls above the 100-day EMA.
The AUD/JPY cross advanced to 113.20 in early European trading Friday, buoyed by optimism over a potential US-Iran truce. Improved risk appetite supported the Australian Dollar, while Japanese Yen losses were capped by intervention fears.
Technical analysis shows the pair trading above its 100-day exponential moving average, with the Relative Strength Index at 52 signaling neutral-to-positive momentum. Resistance is seen near 113.65, while support lies at 112.50.
Japan’s authorities reportedly intervened in currency markets during thin liquidity periods in early May, adding downward pressure on the Yen. The pair’s bullish bias remains intact amid consolidating price action.