Australian Dollar/Japanese Yen Currency Pair Update
Current Market Position
On 10 May 2026 the AUD/JPY pair closed at 113.473 JPY on the IDEAL PRO platform, well below its 52‑week high of 114.701 JPY (28 Apr 2026) and still above its 52‑week low of 91.674 JPY (22 May 2025).
Recent Trading Activity
- Early Monday (11 May 2026): The pair traded near 113.60 JPY in the first minutes of European session trading, reflecting modest gains.
- Early Tuesday (12 May 2026): The pair strengthened to approximately 114.00 JPY as bullish momentum developed.
Technical Drivers
- The pair remained above the 100‑day EMA throughout the period, supporting a bullish stance.
- Relative Strength Index (RSI) indicated a bullish momentum that contributed to the recent upside.
- Immediate resistance is identified at 114.32 JPY, while initial support is around 113.75 JPY.
Fundamental Influences
- Reserve Bank of Australia (RBA)
- Market expectations point to a possible rise of the RBA’s policy rate (OCR) to 4.7 % by the end of 2026, with no cuts expected until 2028.
- Anticipated rate hikes have underpinned the AUD’s strength against the JPY.
- Japanese Market Conditions
- During the early‑May holidays, Japanese authorities intervened in the currency market.
- These interventions are perceived to constrain the JPY’s upside potential, supporting the AUD’s relative gains.
- Overall Sentiment
- The combination of hawkish RBA outlook and interventionary pressure on the JPY has sustained a bullish bias for the AUD/JPY pair.
Outlook
Given the current technical levels and fundamental backdrop, the AUD/JPY pair is expected to test the resistance near 114.32 JPY before any significant reversal. Continued RBA hawkiness and limited JPY intervention should maintain upward pressure in the short term.
