Australian Dollar vs Japanese Yen
AUD JPY is a cross rate with regard to USD. Apart from the US dollar, Japanese yen, euro, and prices for raw materials have significant influence on its dynamics.
In general, the currency pair Australian dollar Japanese yen Forex produce speculative response to political and economic events in the Asian region, especially in Japan. The technical forecast of forex AUD JPY is very complex, and it requires the assessment of many factors of the Asian economy and significant trading experience.
AUD JPY currency pair is not recommended for trade for beginners; however, due to its anticipatory effect, it is often used as an indicator of price situations in the pair USD/JPY. The following factors have strong influence on the Australian dollar and Japanese yen rate: the main economic indicators of the USA, Japan, and Australia (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries; Statements made by the Bank of Japan and the Ministry of Finance of Japan, Japanese yen's currency interventions; The movement of prices for raw materials that influence the Australian economy as well of the Asian stock indexes (Hang Seng, KOSPI, Nikkei 225, SET50, SSE Composite, TOPIX).
Australian dollar Japanese yen, in general, is considered to be a low-liquidity asset; however, it ranks 3rd in the trade volume at the Asian session (after USD/JPY and AUD/JPY). The main volume: exchange operations conducted by the Bank of Japan and large raw material contracts.