The currency pair trades near 112.70 amid technical support but faces pressure from US-Iran tensions and potential JPY intervention.
The AUD/JPY cross climbed to around 112.70 in early European trading on Wednesday, extending its mild bullish bias. The pair remains above key technical levels, including the 100-day moving average at 112.50 and the Bollinger Bands’ middle band at 112.43, signaling underlying strength.
Recent geopolitical tensions, including US strikes on Iran in response to attacks on oil tankers, may limit further gains. The Japanese Yen could find support from intervention fears, capping upside potential. The Relative Strength Index at 51 indicates neutral-to-slightly positive momentum.
Resistance lies at the June 16 high of 113.55, with a breakout targeting 113.70. Downside risks emerge if the pair closes below 112.50, exposing the lower Bollinger band at 111.15.