AUD/JPY Price Forecast: Holds steady near 110.00, bearish technicals persist

The AUD/JPY currency pair traded flat near 110.10 during early European trading on Monday as the Japanese Yen gained support from heightened Bank of Japan rate hike expectations. Markets are widely anticipating that the BoJ will increase its benchmark policy interest rate to 1.25% at its upcoming policy meeting, which would mark the highest borrowing cost in Japan in approximately 31 years. Simultaneously, rate expectations in Australia remain elevated, with money markets pricing in an approximate 76% probability that the Reserve Bank of Australia will raise its Official Cash Rate to 4.60%. Geopolitically and diplomatically, Japanese Ministry of Finance officials have pushed back against external pressure from the United States regarding macro policy autonomy, lending additional stability to the Yen. From a technical perspective, AUD/JPY remains under clear downward pressure, trading below both its 20-period Bollinger middle band and the 100-day Simple Moving Average at 113.00. However, with the 14-day Relative Strength Index dipping near 29 into oversold territory, downside momentum may face near-term consolidation around key support levels at 109.70 and 109.24.