Yen Firms as Japan Official Warns Against Rapid Moves, Pressuring AUD/JPY Below 109.50

AUD/JPY traded in negative territory around 109.30 during European trading hours as Japanese authorities heightened warnings over foreign exchange volatility. Japan's top currency diplomat, Atsushi Mimura, warned that recent exchange rate movements have been excessively rapid as USD/JPY neared 160. Downside momentum in AUD/JPY was sustained below its 100-day Simple Moving Average, though yen gains were constrained after Bank of Japan board member Toichiro Asada advocated for a gradual approach to interest rate hikes. Meanwhile, expectations linger for a December BOJ hike following a 7.1% annual jump in Japan's October producer prices.