AUDJPY pared most of its gains on board-based Yen strength. The intraday trend is bullish as long as support 107 holds. It is now trading about 107.96, having already reached a session high of 108.18.
In a meeting on January 23, 2026, the Bank of Japan (BOJ) decided to keep its policy rate at 0.75% by an 8-1 vote. This cautious decision came even as the bank raised its GDP growth predictions to 0.9% for fiscal year 2025 and 1% for fiscal year 2026, a boost from a recovering global economy and rising wages and prices at home.
Inflation was 2.1% in December, which is still higher than the BOJ's 2% target. The bank thinks inflation will dip below the target in early 2026 before leveling out. They predict core CPI will be 2.7% in fiscal year 2026 before dropping to around 1.9-2%.
Oscillators and moving averages to forecast the trend of AUDJPY
CMP- 108.25
EMA (4-hour chart)
55-EMA- 107.74
200-EMA- 106.69
365-EMA- 106.09. The pair trades below short and above long term moving average.
Major Support- 107.70. Any breach below 106.95 will drag the pair down to 106.95/106.18/105.44/105/104.70/104.35/103.80/103.50/103.
Major resistance - 108.52. Any break above 108.52 confirms minor bullishness, a jump to 109.20/110 is possible.
Indicator (1-hour chart)
CCI (50)- Bullish
Average directional movement Index- Neutral. All indicators confirm a mixed trend.
It is good to buy on dips around 107.72-75 with SL 106.90 for TP of 109.18/110.
