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AUD/JPY slips below 113.50 as Japan signals readiness to act
Japan’s Finance Minister Satsuki Katayama said authorities are ready to take currency steps anytime as needed, while BoJ officials warned delayed stimulus changes could risk a downturn.
The AUD/JPY currency pair traded in negative territory around 113.45 in early European hours on Thursday, moving below the 113.50 level. FXStreet attributed some support for the Japanese yen to verbal intervention by Japanese authorities against the Australian dollar.
Japan’s Finance Minister Satsuki Katayama said the government is ready to take appropriate action on currency anytime as needed, while officials will track market trends and economic data to ensure fiscal sustainability.
FXStreet also cited comments from senior Bank of Japan officials that a delay in adjusting stimulus amid high inflation risks could trigger an economic downturn. A Reuters survey noted nearly half of Japanese firms are experiencing negative business impact from the BoJ’s interest rate hikes, with higher borrowing costs pressuring profits and discouraging capital investment.
On the technical front, the article said AUD/JPY maintains a bullish near term bias as long as it stays above the 100 day simple moving average, which it cited near 112.65. It flagged resistance around 113.70, while support levels were listed near 112.40 and 111.10.