AUD/JPY tried to push higher early in the European session but ran out of steam just before hitting 104.00. After bouncing from the ¥101 area, the pair hit some resistance that kept it in check. Most of that weakness came after Japanese officials surprised the market by warning they might step in if the Yen moved too quickly. The finance ministry repeated its usual message: they’re ready to act if things get out of hand.
On top of that, senior currency officials spoke up, calling the Yen’s recent swings “excessive. Traders took notice and pulled back on bets against the Yen, which gave it a quick boost and dragged AUD/JPY a bit lower. Even so, the drop didn’t go far—there wasn’t much real selling pressure behind it.
RBA Technicals and Outlook Favour the Pair
Meanwhile, Australia’s side of the story is still solid. The Reserve Bank of Australia’s December meeting minutes showed the board is getting more worried about stubborn inflation. They even talked about hiking rates again next year if inflation doesn’t cool down. That kind of talk usually keeps the Aussie dollar supported.
Key Support and Resistance Extends Broader Trend High
Looking at the charts, the uptrend is still in place. AUD/JPY is trading well above its rising 100-day exponential moving average, which sits near 99.64. The Relative Strength Index is above 50, so momentum is still with the bulls even if things have faded from the highs.
If the pair can take out resistance at 104.74, then it’s just another shot at that high 105.00 level. On the downside, if support shows up near 102.82 and AUD/JPY holds above it, the bigger uptrend looks safe—even if there are a few dips along the way.
