Currency Charts: AUD to JPY

The pair of Australian Dollar and Japanese Yen can be considered the top scalping tool. As long as the Japanese currency is issued on a large scale, the whole trading session can boast the big amplitude of quotations.

Interesting facts

There is a platypus on the Australian coin with a value of 20 cents, and there is an echidna on the one, which is worthy of 5 cents. Polymeric notes in this country are also printed for Indonesia, Singapore, Thailand, Mexico, Romania.

Europeans first appeared in Australia in 1788, and at that time, there was no currency. Instead, they had a barter system, and the opportunity to pay with rum was also introduced.

Even though the Australian dollar and Japanese yen demonstrate stability in the world market of the investments, this pair is not considered to be the main one. There is a very tight trading partnership between Japan and Australiaю Anyway, and the yen has a more distinct binding to the US dollar compared with the Australian dollar.

It allows concluding that changes in the economy of the US will lead to the alterations in the AUD/JPY pair. Like it works with the majority of pairs of Australian dollars, the best way to gain benefits is to catch the fluctuation in commodity prices.

This works perfect for currency duets, as long as Japan depends on the export of goods produced in Australia. Sometimes the traders have the opportunity to trade the currencies mentioned a carry pair.

The word “yen” has a meaning of “circle,” “round object.” The connection is simple: the coins are ideally round. In Japan, the Japanese yen has the name “Okane,” which means “money.”

Meiji government approved the currency on the official level by introducing the New Currency Act in 1871. The main aim of this action was to make the monetary situation better.

Before the yen was introduced, in Japan, they had a complex financial system. In 1873 silver was devalued, and the yen lost the price in the market (comparing with the US and Canadian dollar) it used to have. Then the gold standard was adopted.

Later in 1897, the yen cost 50 cents in the market. Because of that, the gold standard was adopted in Japan. Due to this, the situation with the currency in the country became more stable.

As long as Japan is a small country, and it is located rather specifically, natural disasters can influence the country negatively. Accordingly, the yen’s exchange rate will also suffer.

How to trade

As long as the Australian currency shows stability, it’s the Japanese yen which determines the trends in the pair of these currencies. Accordingly, we can assume that Japanese and Asian (primarily Southeast) events have an impact on quotes.

The AUD/JPY pair has growing popularity for traders using the carry trading strategy. The explanation is obvious: there are low-interest rates in Japan, while in Australia, they are high.

There is one more positive thing: the time zones are overlapping in these regions. It helps to conclude that any suppositions that the discount rate in any of these countries will be altered will provoke a disproportionate effect on the two currencies.

The complications in making technical analysis and the shortage of accurate and valid data on the moneywise situation of trendsetting companies in Japan make the pair quite a wrong choice for those involved in trading.

Simple strategies turn out to be ineffective in this situation because it’s vital to study the market entirely and monitor the relationship with the US dollar and the Chinese yuan.

Besides, traders will have to work with quotes of such indices like SET50, KOSPI, TOPIX. They depict what’s going on with the yen most accurately and help with forecasting the changes in the exchange rate.

However, everything we mentioned is not enough to realize. Australia is considered to be one of the biggest exporters of gold and other significant products.

Demand for the assets is somewhat changeable and depends not just on the situation in the global economy but the condition of some spheres of industry. For instance, gold is widely involved in high-precision engineering.

If this industry is on the rise, demand for gold also grows, and the Australian dollar gets more stable. However, the majority of factories connected with this sector are situated in Japan. Accordingly, the yen will also get stronger.

As you can guess, the brief analysis won’t let you realize what’s going on and work out the successful strategy of trading the pair.

A lot of traders are afraid of the hardships. Accordingly, the direction doesn’t get overloaded with quotes and doesn’t undergo unnatural pumps and an impact on the situation.

So, the critical advantage of AUD/JOY is stability. Those preferring to trade at the small risk choose this very pair. It’s simpler to study the situation once and start acting than to worry about unexpected trend changes and the risk of getting deprived of the deposit, which is so usual for highly beneficial pairs.

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