The Australian dollar edged lower against the Japanese yen on Tuesday, with AUD/JPY slipping to the 114.00 handle but holding above its 100-day simple moving average (SMA), a key technical support. The Reserve Bank of Australia’s hawkish tone and resilient commodity prices continue to support the Aussie, while the Bank of Japan’s ultra-loose policy keeps the yen under structural pressure. Immediate resistance lies at 114.50, with a break above 115.00 needed to extend the uptrend. A close below the 100-day SMA would be the first warning for bulls, with next support at 113.20.
Meanwhile, EUR/JPY fell below 184.50, approaching the upper boundary of a descending wedge pattern. This zone also coincides with the 20-day SMA, creating a resistance confluence. The pattern suggests weakening selling pressure, but the failure to hold above 184.50 indicates buyer hesitation. Support is seen at 183.80 and 183.00; a break lower would negate the wedge’s bullish reversal potential. The euro remains pressured by Eurozone growth concerns and cautious ECB commentary, while a slight uptick in Japanese bond yields provided temporary yen support.
Both pairs remain sensitive to global risk sentiment, often acting as barometers for investor risk appetite. While these forex moves do not directly impact cryptocurrency markets, sustained yen weakness could potentially drive flows into alternative assets like Bitcoin. Traders will monitor these technical levels for directional cues.
