Yen regains footing as BoJ officials signal gradual policy normalization path
Australian labor market data shows persistent wage pressures,Ethereum price limiting RBA dovish expectations
Improved global risk appetite contains AUD/JPY downside despite technical correction
The currency pair finds itself at a crossroads after Tuesday's peak at 95.65, with Wednesday's Asian session witnessing profit-taking activity. Market participants appear to be reassessing positions following the JPY's broad-based recovery, which comes amid growing conviction about Japan's monetary policy trajectory.
BoJ Deputy Governor Uchida's latest remarks reinforced market perceptions that Japanese policymakers remain committed to carefully unwinding ultra-loose monetary settings. With Tokyo's inflation metrics continuing to surprise to the upside, traders increasingly price in additional rate adjustments through 2025, providing fundamental support for yen-denominated assets.
Across the Tasman Sea, Australia's wage growth figures delivered upside surprises, prompting economists to reconsider the extent of potential RBA easing. The 1.2% quarterly wage acceleration, coupled with easing US-China trade tensions, creates countervailing forces that may prevent deeper AUD/JPY retracements. Technical analysts note the pair maintains constructive posture above its 50-day moving average near 94.80.
Market dynamics suggest the current pullback may represent healthy consolidation rather than trend reversal. The upcoming Australian employment report carries elevated importance, with consensus expecting stable unemployment around 4.0%. Should labor market conditions demonstrate unexpected resilience, AUD/JPY could rediscover upward momentum toward yearly highs.
