AUD/JPY Holds Near 112.00 as Yen Intervention Fears Persist

AUD/JPY trades around 111.75-112.20 in early July with a mildly bearish bias after slipping below the 100-day SMA. The pair initially strengthened above 113.00 on risk-on sentiment following a US-Iran peace deal but reversed sharply after the BoJ hiked rates 25 bps to 1.00% on June 16 while the RBA held at 4.35%. Downside accelerated on renewed Japanese intervention warnings, softer Australian CPI data, and firmer Tokyo inflation, pushing the cross to a low near 111.25 before a modest recovery. Momentum indicators remain soft with RSI near 44, keeping near-term pressure on the pair.