The cross falls 0.5% as the yen rallies on intervention threats and BoJ rate hike signals, testing key support at the 200-day SMA.
The AUD/JPY cross slid nearly 0.5% to a three-month low near 109.40 early Monday, pressured by a stronger Japanese yen. The yen’s rally followed Friday’s joint US-Japan FX intervention and signals of further action, alongside the Bank of Japan’s willingness to raise borrowing costs.
Technical indicators suggest downside momentum, with the MACD deep in negative territory and a breakdown below a four-month trading range. However, the daily RSI near 27 signals oversold conditions, with support at the 200-day SMA around 109.25.
Diminished expectations for an immediate RBA rate hike also weighed on the Australian dollar, reinforcing the pair’s bearish bias. The cross traded near 110.00 in early European trading but remained vulnerable to further declines.