AUD/JPY falls 0.6% as Yen rebounds, slips below 95.00

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• The AUD/JPY is getting pushed back down into consolidation, slipping back beneath 95.00.
• The Yen is seeing a resurgence across the board on newfound strength.
• The Aussie is seeing recent gains get pared back heading into the end of the week.

The AUD/JPY is seeing downside for Friday as the Yen (JPY) catches a late bid to close out the trading week.

The Aussie (AUD) caught a mid-week bid after Australian inflation ticked higher than expected, pushing the Reserve Bank of Australia (RBA) closer towards additional rate hikes heading into the end of the year, but topside action for the AUD remains limited as the JPY finds some newfound strength.

Japanese inflation improved for October, with the annualized Tokyo Consumer Price Index (CPI) print early Friday coming in at 3.3% versus the previous month’s 2.8%, largely owing to increasing energy prices. 

Tokyo CPI excluding food and energy prices declined, albeit slightly, to 3.8% from the previous period’s 3.9%, which itself was revised upwards from 3.8%.

AUD/JPY traders will be looking ahead to Monday’s Aussie and Japan data readings, with Australian Retail Sales (forecast 0.3%, previous 0.2%) early, followed later in the day by Japanese Unemployment Rate (forecast 2.6%, previous 2.7%).

AUD/JPY Technical Outlook

Friday’s decline for the Aussie sees the AUD/JPY pushing straight back into the 50-day Simple Moving Average (SMA) as the pair struggles to find momentum in the medium term; long-term support sits at the 200-day SMA just below 93.00 while the current ceiling on any bullish moves sits at late September’s high near the 97.00 handle.

The Aussie is still up over 10% from 2023’s lows against the beleaguered Yen, but a rebounding JPY could see the AUD/JPY set for a bearish trend formation.

AUD/JPY Daily Chart

AUD/JPY Technical Levels