AUD/JPY Dips Near 114.50 But Holds Above Key Moving Average

The AUD/JPY currency pair declined to around 114.50 during the early European session on Monday, reflecting a modest pullback in the cross. Despite this drop, the pair remained above its 100-day simple moving average (SMA), indicating that the longer-term bullish trend is still intact.

According to FX Street, the AUD/JPY traded in negative territory during the session, underscoring some near-term weakness. However, the pair's resilience above the 100-day SMA may suggest that investors are still optimistic about the Australian dollar relative to the Japanese yen.

For Japanese market participants, movements in AUD/JPY are closely watched as they can be influenced by shifts in risk sentiment and commodity prices, both critical factors for Japan’s export-driven economy and its financial markets.