AUD/JPY Price Forecast: Attracts some sellers, initial support level emerges above 102.50

The AUD/JPY cross attracts some sellers to around 105.00 during the early European session on Thursday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) amid growing acceptance that the Bank of Japan (BoJ) will stick to its policy normalization path. 

The latest report released by the BoJ for January revealed that the Japanese central bank makes no changes to any of their economic assessments of the nine Japanese regions covered. Most regions stated that regional economies were "recovering moderately" or "picking up moderately." 

Meanwhile, Australia’s mixed Consumer Price Index (CPI) inflation reading for November left the Reserve Bank of Australia’s (RBA) policy outlook uncertain, which weighs on the Aussie. Nonetheless, RBA Deputy Governor Andrew Hauser said on Thursday that the November inflation report was largely as expected, adding that the interest rate cuts are unlikely anytime soon.

Technical Analysis:

In the daily chart, AUD/JPY holds well above the rising 100-EMA at 100.79 and the 20-period SMA at 104.35, maintaining a bullish bias. The upward slope of both averages supports continuation, and pullbacks could find buyers near these gauges. RSI at 62.04 is neutral-bullish, confirming steady momentum without overbought conditions.

Bollinger Bands are rising and moderately widening, reflecting increasing volatility within the prevailing uptrend. Price trades above the middle band and leans toward the upper band at 106.05, which caps the near-term advance; a close above that barrier could extend the move, while failure to break would keep the pair consolidating toward the midline. Below the midline, the lower band at 102.65 defines stronger support.

(The technical analysis of this story was written with the help of an AI tool)