AUDJPY Analysis

Introduction

The AUD/JPY reflects the relationship between the commodity-driven Australian economy and Japan’s export-heavy economy. This pair is affected by risk sentiment, with the AUD benefiting in times of economic expansion, while the JPY strengthens in times of global uncertainty. The pair’s movements are influenced by global commodity prices and economic data from both Australia and Japan.

Fundamentals and Interest Rates

The Reserve Bank of Australia policy is Dovish with the (RBA) current Interest rate 3.85%. Latest change was Feb 03, 2026 (25bp)%.
On that side the Bank of Japan policy is Hawkish and (BOJ) has set its interest rate to 0.75% by latest change, Dec 19, 2025 (25bp).
(RBA) Higher interest rates generally lead to higher returns on investments denominated in AUD. This tends to attract foreign capital into AUD assets.

Based on the economic and macro fundamental data, The Fundamental Bias of AUD is Strong Bullish and for the JPY is -- Neutral.
Ziwox considering Moderate Bullish bias for this asset and we anticipate long-term price increases.
Our Ziwox A, mid-term Fundamental Score for AUD is 4. and Fundamental Score for JPY is -8. So, base on the Fundamental Score, we predict mid-term upside price movement.

Market Overview & Performance

In the current trading session, "London & New York", Market risk sentiment is Mix. The Australian dollar and EUR recorded the strongest performance, while the Canadian Dollar and United States Dollar are weakest so far.

Currencies performance vs US dollar "USD"
Gold "XAU", recorded a 0.16% increase against us dollar.
Euro "EUR", performance has been 0.37% up so far
Pond "GBP", performance has been 0.33% up as of now
Australian dollar "AUD", has risen by 0.52%
New Zealand dollar "NZD", has risen by 0.15%
Japanese YEN "JPY", experienced 0.2% rise
Swiss franc "CHF", experienced 0.35% rise so far
Canadian dollar "CAD", has lost -0.04%

Market Sentiment and Positioning

AUD COT (Commitments of Traders):

Institutions Net Position on >Australian Dollar is 54197 included 121394 long, 67197 short and -13565 position changed from last week.
So they mainly have a bullish view on this asset and bought AUD for higher prices in long-term.
Last week -13565 repositioning Indicates closing positions, short-term profit-taking, or a general pessimism about prices.

JPY COT (Commitments of Traders):

Institutions Net Position on >Japanese Yen is -41387 included 119411 long, 160798 short and -24812 position changed from last week.
So they mainly have a bearish view on this asset and sold JPY for lower prices in long-term.
Last week -24812 repositioning Indicates more sell positions and price pressure in short-term.

Retail Traders:

Crowd traders or Retail traders are bullish on the AUDJPY with 60% 40% ratio. 0 long pos and 0 short position.
We generally adopt a contrarian approach towards crowd sentiment and we give probability AUDJPY prices may decrease.

Technical Levels and Support/Resistance

The AUDJPY pair is approaching a critical technical support level near 110.673.
Technical trend is BUY, If the pair continues to weaken, this support could become a good area to enter a long positions.
On the upside, there is key resistance near 114.469. Technically, A break above this resistance could signal a shift in momentum, but need to get a confirmation in this area due to the reversal or correction potential.