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The AUD/JPY cross has risen to approximately 114.05 during the European session, driven by a hawkish stance from the Reserve Bank of Australia (RBA). The Australian Dollar strengthened against the Japanese Yen as traders anticipate tighter monetary policy from the RBA, which could support the AUD. The pair is currently trading above its 100-day Exponential Moving Average (EMA), a technical indicator suggesting sustained bullish momentum.
This development is significant for forex traders as it highlights the impact of central bank policy on currency pairs. The RBA's hawkish positioning contrasts with the Bank of Japan's dovish approach, creating a favorable environment for the AUD/JPY cross. Traders may view this as a potential entry point for long positions, especially if the 114.00 level holds as support.
Looking ahead, investors should monitor the RBA's upcoming policy decisions and any shifts in the Bank of Japan's stance. Technical levels to watch include the 100-day EMA at 113.50 and key resistance at 115.00. A break above 115.00 could signal further gains, while a pullback below 113.50 might trigger short-term volatility.
