The AUD/JPY cross holds steady near 98.50 during the early European trading hours on Wednesday. Renewed trade tensions between the US and China, and persistent geopolitical tension might underpin safe-haven currencies like the Japanese Yen (JPY) and cap the upside for the cross.
The AUD/JPY cross opens with a bullish gap at the start of a new week and recovers a part of Friday's slump of over 250 pips to the 97.80 region.
AUD/JPY halts its winning streak that began on August 5, trading around 96.20 during the Asian hours on Thursday. The currency cross weakens as the Japanese Yen (JPY) strengthens, driven by external factors, particularly the softening of Fed rate expectations, which is narrowing yield spreads.