The currency pair falls as traders brace for potential Japanese intervention after recent US-Japan coordination boosts the yen.
The AUD/JPY cross declined to 111.15 in early European trading, extending losses amid heightened expectations of Japanese currency intervention. Recent coordination between the US and Japan has bolstered the yen, pressuring the pair below key technical levels.
Japan’s Finance Minister indicated officials are prepared to act further on currency movements, while Bank of Japan minutes revealed policymakers debated additional rate hikes to address rising price risks. Australia’s trade surplus widened unexpectedly in June, with exports surging 9.6% month-on-month, though this failed to offset yen strength.
Societe Generale strategists warned that a single intervention may not reverse the trend, keeping markets on alert for further action. The dollar’s evolving strategy adds to uncertainty around the yen’s trajectory.