The cross climbs to 113.25 as traders weigh potential Japanese pension fund shifts and intervention risks amid a bullish technical setup.
The AUD/JPY pair rose to 113.25 in early European trading, extending gains as the Japanese Yen weakened on reports that the Government Pension Investment Fund may increase domestic asset purchases. Finance Minister Satsuki Katayama indicated the government is considering measures to support the currency, though no concrete plans have been announced.
Technical indicators remain bullish, with the cross trading above its 100-day simple moving average and the 20-day Bollinger middle band. The Relative Strength Index at 56.23 suggests sustained buying pressure without overbought conditions. Resistance is eyed at 113.55, while support lies at 112.65.
Traders remain cautious over potential Japanese intervention, which could limit further upside despite the current momentum.