AUD/JPY is the Forex pair representing the Australian Dollar (AUD) versus the Japanese Yen (JPY). This pair is notable for its volatility given the often divergent state of the represented economies. Australia has been noted for high growth rates and significant deposits of natural resources. Japan the opposite, with a declining population that’s estimated to decline by more than a third over the next fifty years.
This pair can be especially attractive for breakout approaches given its penchant for volatility. Long-term trends can also develop and are especially favorable to the long side, given the Bank of Japan’s continued committal to zero/negative rates. During strong global growth periods, the bullish side of the pair can be especially attractive, as global thirst for raw materials drives additional investment into Australia, while Japan does not enjoy a similar economic backdrop.