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AUD/JPY rises to around 113.25 as yen softens on GPIF talk
Japan is reportedly considering having the GPIF increase domestic asset purchases to support the currency, but traders are also watching for potential yen intervention.
AUD/JPY traded in positive territory around 113.25 in early European hours on Wednesday, with the Japanese yen edging lower versus the Australian dollar.
The move followed reports on the Government Pension Investment Fund, or GPIF. Japanese Finance Minister Satsuki Katayama said Tuesday that the government is considering nudging the world’s largest pension fund to buy more domestic financial assets to support the currency, though no concrete plan has yet emerged.
Traders also remain alert for possible yen intervention by Japanese authorities, which could limit any upside in the cross.
On the technical side, FXStreet notes the pair is holding above the 100-day simple moving average, with the RSI at 56.23 indicating buying pressure that is constructive but not overbought. Key resistance is cited near the upper Bollinger band around 113.55 and the May 14 high of 114.66, while support is seen near 112.65 at the 100-day SMA and around 111.15 at the lower Bollinger band.