Trader’s rundown for the AUD/JPY pair: Key info and recent trends

AUD/JPY is a minor forex pair consisting of the Japanese yen and the Australian dollar. It’s one of the twelve minor pairs, with both currencies coming from major world economies but neither being USD.

This article explores the pair from a forex trader’s perspective, covering key details such as drivers, important reports to watch for, and optimal trading times. It also highlights recent developments related to the pair and its constituent currencies, offering traders valuable insights.

Australian Dollar – General info

The Australian dollar is the official currency of Australia. It’s also the official currency in its external states (New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania), and the three Pacific Island States (Kiribati, Nauru, Tuvalu). It is the sixth most traded currency in FX markets, and the sixth most widely kept in global currency reserves.

The Australian dollar replaced the Australian pound in 1966. Since its symbol is $, sometimes A$ or AU$ are used to distinguish it from other currencies with similar names and symbols. AUD is under the jurisdiction of the Reserve Bank of Australia, it’s printed by Note Printing Australia, and minted by Royal Australian Mint.

Japanese yen – General info

The Japanese yen is the official currency of Japan. After the Euro and Dollar, it may be the most significant currency to learn in the forex market. It’s the third most traded and the third most widely kept in foreign reserves globally.

The yen first came into use in 1871 and its symbol is ¥‎. The central bank governing the yen is the Central Bank of Japan, it’s printed by the National Printing Bureau, and minted by Japan Mint.

AUD/JPY peak trading times

Although the Australian and Japanese time zones are fairly close, their trading hours are awkward for most Western traders. Luckily for the AUD/JPY pair, it also sees increased activity not only when its two constituting currencies overlap, but also when either overlaps with European or US markets. Some of the top trading periods for the AUD/JPY pair are outlined here.

Australian and Japanese market overlap (11:00 PM to 6:00 AM GMT)

For any forex pair, the overlap of its base and quote currency’s markets is bound to be a good period to trade. Not only is that when the economies of the two countries are most active, but it’s also when important reports usually come out. Anyone really focusing on the AUD/JPY pair might just have to get used to the night shift.

Asian and European market overlap (7:00 AM to 8:00 AM GMT)

When the Tokyo and London markets overlap, there’s often an increased interest in the JPY and pairs containing it. The few hours before and after (while the Japanese markets wind down and the UK and the rest of Europe wake up) can also have increased activity.

European and New York market overlap (12:00 PM to 4:00 PM GMT)

While this overlap doesn’t have any particular connection to either JPY or AUD, it’s a highly active time for forex traders. Currencies across the board see increased volatility and volume during this period, so it may be notable for traders who enjoy those conditions.

Key reports to follow for AUD/JPY traders

For forex traders, financial reports are an invaluable source of information. They can lead to significant shifts in value and expectations around them often build massive price tension, which is then released when the report becomes public. Here, we’ve outlined some of the most important reports for the AUD/JPY pair.

AUD key reports

• Gross Domestic Product (GDP) – Australian Bureau of Statistics (ABS), quarterly
• Consumer Price Index (CPI) – Australian Bureau of Statistics (ABS), quarterly
• Labour Force Survey (Employment Change & Unemployment Rate) – Australian Bureau of Statistics (ABS), monthly
• RBA Monetary Policy Statement & Interest Rate Decision – Reserve Bank of Australia (RBA), monthly (typically on the 1st Tuesday of the month)
• Trade Balance Report – Australian

JPY key reports

• Gross Domestic Product (GDP) – Cabinet Office of Japan, quarterly
• Tokyo Core Consumer Price Index (CPI) – Statistics Bureau of Japan, monthly
• Tankan Survey (Business Sentiment Index) – Bank of Japan (BoJ) quarterly (March, June, September, December)
• BoJ Monetary Policy Statement – Bank of Japan, 8 times per year
• Trade Balance Report – Ministry of Finance (Japan), monthly
• Bureau of Statistics (ABS), monthly

Non-report drivers for AUD/JPY

JPY is a safe haven currency. This means that in times of global uncertainty (due to Japan’s relative economic isolation), people tend to flock to it. Similarly, geopolitical tensions in East Asia (China, Taiwan, North Korea), often cause capital to shift to Japan.

For AUD, it’s almost the complete opposite. It’s a very risk-sensitive currency, in that it rises when traders are optimistic and is quickly sold off in bearish markets. Australia is a significant commodity exporter (iron ore, coal, gold), so the prices of these assets can significantly impact AUD. Additionally, since China is Australia’s biggest trade partner, the health of China’s economy impacts Australia’s trade balance, thus impacting AUD.

AUD/JPY recent developments

Here are some examples of key recent developments for easier entry into AUD/JPY trading.

Risk-off market mood provides support to JPY (3.4.2025)

In intraday trading, the JPY has had strong gains. This, paired with universal USD selloffs has pushed the USD/JPY pair to the 147.00 mark, signifying a four-week low. With the US president, Donald Trump announcing a minimum 10% tariff on all imports, concerns about the global trading systems and economic growth remain prevalent.

Pairing with that, a conviction that the BoJ will spike interest rates while the Fed withdraws narrows the Japan-US risk differential. This offers further support to the JPY, with some forecasters predicting that bears may attempt to break the resistance at 147.00.

Tariff deadlines debilitate AUD (4.4.2025)

The risk-sensitive AUD has seen a retraction as traders respond to the US’ looming tariff policy. The pair has seen across-the-board decline against majors, hitting a 5-year low against the euro (1.7780), a 1-year low against CAD (0.8789), and our pair at hand, AUD/JPY, hitting an 8-month low (90.85).

Disclaimer:
This information is not considered investment advice or an investment recommendation, but instead a marketing communication.