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AUD/JPY slips below 113.50 as Japan intervention rhetoric returns
Japan Finance Minister Satsuki Katayama again warned that authorities would take decisive action if needed, lifting demand for the yen as AUD/JPY trades near 113.35.
AUD/JPY traded lower in early European hours on Friday, moving in negative territory around 113.35 after renewed intervention rhetoric from Japan, which boosted demand for the yen against the Australian dollar.
FXStreet said Japan’s Finance Minister Satsuki Katayama repeated verbal intervention, stating that if it becomes necessary, authorities will take decisive action at any time, with the comments coming ahead of a Japan holiday weekend that in the past has been associated with late-night moves.
The report noted that the Bank of Japan meets later this month after raising interest rates to the highest level in three decades in June, with expectations for another rate increase before year end, though not at the July meeting.
On the technical side, AUD/JPY was described as holding a constructive bullish bias while above the 100-day simple moving average and the Bollinger Bands’ middle line, with resistance near 113.80 and the May 13 high at 114.74, while downside support was flagged around 112.70 and the lower Bollinger band near 111.05.