AUD/JPY Price Forecast: Skyrockets past 111.00 on hot Aussie CPI

💡 DMK Insight

The AUD/JPY’s 1.20% rally signals strong market sentiment following Australia’s inflation report, which is crucial for traders to note. With the cross currently at 111.38, the expectation of further rate hikes from the RBA could bolster the Aussie, especially as traders react to the potential for tighter monetary policy. This move aligns with broader trends in the forex market where central bank actions are increasingly influencing currency valuations. Keep an eye on the 111.50 resistance level; a break above could trigger further bullish momentum. Conversely, if inflation fears ease, we might see a pullback. It’s also worth considering the implications for related pairs, like AUD/USD and JPY/USD, which could experience correlated movements. If the RBA does follow through with rate hikes, expect increased volatility in these pairs as market participants adjust their positions. Watch for any upcoming economic data releases that could sway sentiment, particularly those related to inflation or employment figures in both Australia and Japan.