# Australian Dollar Holds Above 100-Day SMA as AUD/JPY Gains Momentum Despite Soft Employment Data > The AUD/JPY currency pair continues to strengthen above the 113.50 region, driven by positive RSI technical momentum and support at the 100-day SMA, even as Australia's latest labor report indicates a rising unemployment rate. **Type:** article · **Category:** Market · **Published:** 2026-08-21 · **Source:** TrendKia **Canonical:** https://trendkia.com/en/market/aud-jpy-100-day-sma-ke-oopar-majboot-kamzor-rozgar-aankdon-ke-bawajood-teji-barakarara-19492 · **Language:** English **Tags:** Australian Dollar, Japanese Yen, Forex Market, RBA, Bank of Japan, Technical Analysis, G10 Currencies, finance The AUD/JPY currency cross is demonstrating resilient upward strength, moving near the 113.55 region during Friday's early European trading session. The Australian Dollar (AUD) maintains a constructive technical stance above its 100-day simple moving average (SMA) against the Japanese Yen (JPY), shrugging off weaker-than-expected domestic labor market figures. Financial markets are now turning their attention to the upcoming release of the Reserve Bank of Australia (RBA) meeting minutes scheduled for next Tuesday. ## Australian Employment Contraction and Implications for RBA Policy Official data published on Thursday by the Australian Bureau of Statistics revealed that Australia's Unemployment Rate climbed to 4.5% in July, up from 4.4% recorded in June. Concurrently, net employment experienced an unexpected decline of 15,800 positions in July. This outcome fell short of market forecasts that had anticipated a growth of 15,000 jobs, following a substantial expansion of 80,200 jobs in the previous month. The softening employment indicators have prompted currency traders to adjust their expectations regarding future monetary tightening by the Reserve Bank of Australia (RBA). Nerida Conisbee, chief economist at Ray White, noted that the rise in joblessness reinforces the argument for the central bank to pause rate adjustments, particularly given the broader signs of deceleration emerging across the Australian economy. ## Institutional Carry Trade Dynamics and Yen Positioning Institutional market participants continue to maintain exposure to carry trade strategies across G10 currencies. Ashwin Binwani, founder of Alpha Binwani Capital, highlighted that institutional allocations remain concentrated in AUD-led carry setups. At the same time, market flows suggest that short positions against the Japanese Yen are being rebuilt as the initial market impact of official currency interventions fades. ## AUD/JPY Technical Chart Structure and Key Levels From a technical analysis perspective, the AUD/JPY daily chart reflects a sustained bullish structure above both the 100-day SMA and the middle line of the Bollinger Bands. This alignment indicates underlying buying interest on price dips following recent retracements. The Relative Strength Index (RSI) stands at 58.12, holding firmly in positive territory below overbought thresholds, suggesting consistent upward momentum without immediate signals of exhaustion. To the upside, immediate resistance is identified at the July 22 peak of 114.40, followed by the upper Bollinger Band boundary near 114.75. A sustained advance beyond these levels would bring the 115.00 psychological round figure into focus, where profit-taking and technical supply may temporarily check further gains. On the downside, initial support rests at the 100-day SMA located at 113.10. A breach below this level could lead to a retest of the Bollinger middle band at 112.45. Deeper pullback risks expose the August 10 low of 111.63, with the lower Bollinger Band around 110.15 providing a broader structural floor. ## Japanese Yen Market Drivers and Bank of Japan Policy Shift The Japanese Yen (JPY) remains one of the premier global reserve and trading currencies. Its valuation is anchored by Japan's macroeconomic performance, Bank of Japan (BoJ) monetary policy, yield differentials between Japanese and US sovereign bonds, and broader international risk appetite. The BoJ holds official responsibility for currency stability, making its policy decisions central to Yen pricing. While the BoJ has conducted direct market interventions in the past to curb excessive Yen appreciation, such measures are deployed sparingly due to diplomatic considerations with major trading partners. Between 2013 and 2024, the central bank's ultra-loose monetary policy framework created significant divergence with other central banks, depressing the Yen. Recent steps to exit this framework have provided fundamental support to the currency. ## Divergence in Global Sovereign Bond Yields and Safe-Haven Demand Over the past decade, persistent monetary easing by the BoJ widened the spread between 10-year US Treasury yields and Japanese Government Bonds (JGBs), heavily favoring the US Dollar over the Yen. However, the BoJ's policy recalibration initiated in 2024, combined with rate reduction cycles among other major central banks, is steadily narrowing this yield differential. Furthermore, the Yen retains its status as a primary safe-haven asset, frequently attracting capital inflows during periods of global geopolitical or economic stress. ## Overview of Broader Foreign Exchange and Asset Class Performance Movement across major global asset classes reflects shifting market sentiment. The GBP/USD exchange rate held onto daily gains near the 1.3630-1.3620 range on Thursday, despite a modest rebound in the US Dollar, as market participants await key UK economic data releases scheduled for Friday. The EUR/USD pair relinquished early advances, receding below the 1.1700 threshold following a late recovery in the Greenback. The pair closed largely unchanged after the North American session, with traders preparing for preliminary S&P Global Manufacturing and Services PMI reports on Friday. Gold prices surged to a fresh high since early June near $4,544 per ounce during Asian trading hours on Friday, consolidating above its technically significant 200-day Simple Moving Average. In fixed income and fiscal news, the United States is approaching a national debt figure of $40 trillion. Analyst Mike Maharrey highlighted growing economic risks associated with debt accumulation and potential vulnerabilities in the $1.4 trillion private credit sector. Concurrently, the US Treasury announced an expansion of its liquidity support buyback operations in 10-to-20-year and 20-to-30-year sectors, raising the limit from $2 billion to at least $4 billion per operation between September 9 and November 4. ## Global Entrepreneurial Perspective Lallalit Srijandorn, a Paris-based digital entrepreneur who has resided in France since 2019 and operates across Paris and Bangkok, observes that evolving exchange rate dynamics demand careful financial planning for cross-border operations and international currency management. ## What this means for you - **Across India:** Currency fluctuations in major pairs like AUD/JPY influence broader foreign exchange stability, impacting import costs and cross-border remittances. - **For Global Investors:** The technical strength above the 100-day SMA presents trading opportunities in AUD/JPY carry trades, provided support levels are respected. ## Questions & Answers ### 1. What is the current trading level for the AUD/JPY cross? The AUD/JPY currency pair is trading firmly around 113.50 to 113.55, remaining supported above its 100-day SMA. ### 2. How did Australia's recent labor market data impact market expectations? Australia's unemployment rate rose to 4.5% in July with a loss of 15,800 jobs, strengthening expectations for the RBA to keep interest rates on hold. ### 3. What are the primary support and resistance levels for AUD/JPY? Immediate resistance is seen at 114.40 and 115.00, while key downside support rests at the 100-day SMA level of 113.10. ### 4. How is Bank of Japan policy influencing the Japanese Yen? The BoJ's gradual exit from ultra-loose monetary policy provides baseline support for the Yen, though carry trade demand continues to affect valuation. --- _TrendKia — Har trend, sabse pehle.. Machine-readable view; canonical HTML at the URL above._