The AUD/JPY currency pair climbed to around 112.70 during the early European session on Wednesday, reflecting a mildly bullish momentum, according to FX Street.
However, renewed tensions between the US and Iran, coupled with fears of potential intervention by Japanese authorities, could provide support for the Japanese yen and limit further gains in the cross, FX Street reported.
Given Japan’s sensitivity to geopolitical developments and safe-haven flows, market participants continue to monitor these factors closely as they influence FX dynamics and risk sentiment.