Japan's CPI Drop Supports AUD/JPY Bullish Outlook Above 109.00

The Reserve Bank of Australia (RBA) recently raised interest rates to 3.85% to combat inflation, providing a fundamental boost to the Australian dollar. Conversely, new data reveals that Japan's Consumer Price Index (CPI) has fallen below the Bank of Japan's (BoJ) target, reinforcing the Yen's weakness. This widening monetary policy divergence has kept the AUD/JPY pair resilient near the 109.00 level. Although technical signals like the 'Doji' pattern previously suggested potential resistance, the overall price forecast maintains a bullish bias. Analysts suggest that the upward momentum remains intact as long as the pair stays above the critical 109.00 support threshold. Investors are now focused on whether these strong fundamental drivers will outweigh technical exhaustion and trigger further gains.