AUD/JPY Price Forecast: Softens below 112.50, bearish tone prevails

AUD/JPY is trading lower around 112.25 as the Japanese Yen strengthens on reports that Japanese authorities are pushing public pension funds to increase allocations to domestic assets. The move is seen as supportive of the JPY because it could trigger more inflows into Japanese markets, while also lending support to domestic equities and bonds. Technically, AUD/JPY has a mildly bearish short-term bias after slipping below the Bollinger middle band, though it remains within a broader uptrend and above its 100-day SMA near 112.59. Momentum has softened, with RSI around 47, but the pair is not yet oversold. Key resistance sits near 112.35 and 113.52, while downside risk rises below 111.15. Overall, the article points to near-term yen strength and modest downside pressure on AUD/JPY, but not a full trend reversal unless support breaks.