The AUD/JPY currency pair traded around 110.90 during the early European session on Thursday, reflecting ongoing market dynamics influenced by external factors. According to FX Street, the pair remains in positive territory as investors weigh current conditions.
Elevated energy prices, driven by the ongoing conflict in the Middle East, are placing downward pressure on the Japanese Yen, making it weaker against the Australian Dollar. FX Street highlighted that these energy cost concerns are a key factor behind the Yen's relative softness in the FX market.
For Japanese investors, the movement in AUD/JPY near the 100-day simple moving average (SMA) is notable, as fluctuations in energy prices continue to influence currency valuations and broader market sentiment.