AUD / JPY (Australian Dollar / Japanese Yen)

How can you trade the AUD/JPY?

To ensure that you are taking advantage of the best trading conditions, there are three aspects you should consider. 

First, though the global market operates 24 hours a day, 5 days a week, you need to find out the best time to trade this asset. Timing is further a question of closely monitoring the release dates of any important economic events that may greatly impact the AUD/JPY. 

Then, there is the matter of volatility. To avoid high costs and manage your risk while trading, it is advised that you open your trades when the volatility is around the average range.

Lastly, it is best to consider using limit orders and not market orders as the last add additional costs and raise slippage. Trading using limit orders reduces the slippage to zero as well as the costs. 

What factors influence the AUD/JPY?

Japan and Australia are located in similar time zones, and so their respective currencies are affected at the same time. On the plus side, these currencies are easy to track with regular updates from each country.  

The Australian dollar is susceptible to change in market value due to interest rate changes and the monthly employment report. The Japanese yen, however, is impacted by Japan’s unemployment rates, balance of trade, and consumer confidence. 

The currencies are also affected by the countries’ balance of trade, which is measured by how much goods a country provides to other countries. Japan is the fourth biggest supplier, whereas Australia comes in at 24. 

What to consider when trading the AUD/JPY?

If you are looking for short term gains, this currency pair offers excellent opportunities to make a profit as even a small fluctuation can result in a significant return. 

Those traders who are already heavily invested in currency pairs should consider diversifying and minimizing their risk by adding the AUD/JPY pair to their trading portfolio. 
AUD/JPY is a minor currency pair and so tends to induce less attention than some more prominent pairs like USD/EUR. However, Australia and Japan are two closely entwined economies, and any savvy trader can have an exciting time successfully trading AUD/JPY on the worldwide market. 

What is AUD/JPY Forex Trading?

Forex trading is one of the biggest and most widespread financial activities on Earth, with over $5 trillion worth of forex traded every single day. With all forex trading, the goal is to shop for or sell on currency within the hopes that its value against another currency will change, after which you’ll be able to buy or sell and make a take advantage of those price changes.  

Many individual forex traders tend to stay to day trading, which suggests buying and selling a currency pair within the identical day, with the intention of capitalising on incremental price shifts throughout the trading period. AUD/JPY forex trading describes buying and selling the AUD/JPY pair within the hopes of benefiting from later price shifts. for instance, a trader might buy AUD/JPY within the hopes that the Aussie dollar would appreciate against the Yen, after which point, they might sell for a profit. 

Factors that Influence AUD/JPY

Many factors impact the daily price of AUD/JPY, such as:  

  • Interest rates and monetary policy announcements by either the Bank of Japan (BOJ) or the Federal Reserve Bank of Australia (RBA).  
  • Fluctuations in oil prices – as Australia may be a major exporter and Japan relies entirely on oil imports any developments that affect the value of the Japanese Yen (JPY).  
  • US economic news – the fortunes of both economies are closely tied to it of the US.  

How to Trade AUD/JPY

Despite the occasional liquidity problems, trading AUD/JPY is easy and simple. These are two hugely influential global currencies, so you may haven’t any trouble finding up-to-date financial analytics and news about AUD/JPY. In addition, it’s essential that you simply use a trusted online broker to trade AUD/JPY – one that relies on real market data and executes your forex trades in real-time. With a trusted forex broker, you’ll be able to begin successfully trading AUD/JPY.  

The Role of AUD

The dollar is that the world’s seventh most widely-held reserve currency, and possibly the foremost valuable within the Asia-Pacific region.  

Australia is one in all the world’s most prosperous economies, yet as a serious oil and gas exporter with an enormous financial sector. Aussie dollars were once ignored by forex traders, but are increasingly becoming a vital component of any balanced forex portfolio.  

The Role of JPY

The Yen is that the most widely-held and traded Asian currency by a awfully wide margin and one that each forex trader cannot afford to ignore. it’s the official and only currency of Japan, a rustic with one among the world’s most vital financial centres, Tokyo – yet united of the world’s most influential technology and manufacturing centres. The BOJ is incredibly proactive in managing the worth of JPY so as to stay exports competitive, so, it’s best to also keep an eye fixed on the financial institution when trading AUD/JPY. 

How to profit from AUD/JPY

The AUD/JPY is a volatile currency pair, subject to dramatic price fluctuations. As a forex trader, it’s your job to successfully identify when these moments of volatility are likely to occur. If you’ll perfect this delicate art, for instance, by monitoring the costs of correlated commodities like oil, then you’ll be able to begin to benefit from AUD/JPY forex trading. 


Last but not least, Australia and Japan are considered the strongest of the eastern markets, and both countries are advanced and enjoy political stability. However, both suffer from serious financial issues. Australia is $6 trillion dollars in debt due to government programs and social obligations. Japan, on the contrary, has been accused of establishing zombie banks (i.e.- banks with no money in them) to receive charity from central banks and loans from the government. 

Did you know?

The name of Japan’s official currency derives from the word meaning ’round’, and it borrows its phonetic reading from the Chinese word yuan and the Korean, both north and south, won.
The yen is the third most traded currency in the global market and is the fourth widely used reserve currency.