Công ty Taurex Global Limited được quản lý bởi Cơ quan Dịch vụ Tài chính của Seychelles (FSA) (SD092)
Explore the live buy and sell prices, as well as the spread of AUD/JPY. Discover trading opportunities, key factors that influence AUD JPY, and common pitfalls to avoid in your trades.


Summary
| Type | CFD |
|---|---|
| Minimum Spread | - |
| Long Position Overnight Funding Adjustment | - |
| Short Position Overnight Funding Adjustment | - |
| Overnight Funding Adjustment Time | 21:00 UTC |
| Currency | - |
| Min. Traded Quantity | - |
| Margin | - |
| Margin Requirements | - |
| Trading Hours | - |
The AUD/JPY pair shows how many Japanese yen you need to buy one Australian dollar. Known as the "Aussie," this cross reflects the strong trade relationship between Australia and Japan, with iron ore exports creating a notable negative correlation. The pair offers good liquidity and relatively predictable patterns during Asian trading hours.
This strategy takes advantage of the strong positive correlation between iron ore prices and AUD/JPY movements. When iron ore futures rise, the Australian dollar often gains against the yen. Use 20–40 pip stop losses and focus on Asian trading hours when iron ore markets are most active. While the correlation is typically strong, often in the +0.70 to +0.80 range, weekly commodity reports can trigger unexpected volatility, so it's important to stay alert around data releases.
Position trades 50 pips above and below key levels ahead of Bank of Japan (BOJ) announcements to capture potential breakout moves. Even with rates held near historic lows, any policy adjustments, especially related to yield curve control, can trigger sharp 100-150 pip swings within hours. Set orders on both sides and apply trailing stops once momentum builds. Given the market’s sensitivity to BOJ policy shifts, this setup offers strong potential for experienced traders.
Focus on the 00:00-06:00 UTC window, when both the Sydney and Tokyo markets are active, creating consistent overnight liquidity. During this period, 30-50 pip consolidation ranges often develop, particularly on Tuesdays and Wednesdays when institutional participation rises. Enter breakout trades with 20-pip stop losses and aim for 60-80 pip targets. This strategy is effective because central bank interventions in the Asian session are relatively rare, allowing price action to unfold more predictably.
Driver
Why it matters
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Australia supplies around 60% of the world’s iron ore, contributing to a strong inverse correlation between iron ore prices and AUD/JPY movements during active commodity trading sessions.>>
The interest rate gap between the Reserve Bank of Australia and the Bank of Japan creates notable carry trade opportunities, with yield differentials often guiding medium-term directional bias in AUD/JPY.>>
Export revenues from iron ore, coal, and gold play a key role in supporting AUD strength, as the mining sector accounts for roughly 15% of Australia’s overall GDP.>>
Policy changes and trade tensions between Australia, Japan, and China affect cross-border capital flows and currency demand patterns.>>
China’s heavy trade reliance on Australia (around 40%) amplifies the impact of Australian economic data, making key releases like GDP and employment figures major drivers of AUD/JPY volatility.Disclaimer: Keep in mind that monetary policies, geopolitical tensions or recent macro data can quickly change the direction of this pair.
Many traders mistakenly assume that movements in iron ore prices immediately translate to shifts in AUD/JPY. While a strong inverse correlation often exists, timing is more critical than direction alone. Market reactions can lag by 2-4 hours during Asian sessions, highlighting the importance of patience and confirmation rather than relying on real-time commodity price changes.
How to dodge it: Use iron ore as directional bias only, then wait for price action confirmation on your charts. Set alerts for iron ore moves above 2% but don't enter positions until you see corresponding AUD/JPY momentum with volume confirmation.
Japan’s yield-sensitive economy means that BOJ statements and inflation data often trigger outsized market moves. With the banking sector making up roughly 15% of Japan’s GDP, any signs of financial instability can have significant currency implications. Traders who focus solely on Australian fundamentals risk overlooking these key Japanese catalysts that heavily influence AUD/JPY volatility.
How to dodge it: Monitor BOJ meeting minutes, Japanese inflation reports, and yield curve control announcements. Set economic calendar alerts for Japanese data releases and reduce position sizes during uncertain policy periods to avoid unexpected volatility spikes.
Australia and Japan operate on separate holiday calendars, leading to unique liquidity gaps in AUD/JPY trading. When one market is closed, reduced participation often results in wider spreads and elevated gap risk. Without proper planning, traders can be caught off guard by overnight moves exceeding 50 pips during these low-liquidity periods.
How to dodge it: Check both Australian and Japanese holiday calendars before holding overnight positions. Reduce position sizes by 50% during holiday weeks and avoid entering new trades 2 hours before market closures on holiday eves.
Find answers to commonly asked questions about forex trading on Taurex, including topics related to account setup, platform features, trading conditions, and more.
Australian employment data, GDP growth, and RBA meeting minutes drive AUD strength, while Japanese inflation reports, BOJ policy statements, and yield curve control changes affect JPY. Iron ore prices remain the most reliable leading indicator, with China's PMI data providing additional context for commodity demand expectations.