AUD JPY: Live AU Dollar-Japanese Yen Rate, Chart and Forecast
AUD JPY is one of the minor currency pairs in the forex realm. This explains why it tends to get less attention than some major currency pairs like EUR/USD for example. That said, Japan and Australia are closely entwined economies, and all traders can have a great time successfully trading AUDJPY on the global market. Read on to learn everything there is to know about AUDJPY forex trading.
What is AUD JPY? Overview
Forex traders who encounter the AUDJPY are witnessing the Australian Dollar – Japanese Yen currency pair in action. Put simply, AUDJPY describes the amount of Japanese Yen that forex traders need to acquire a single Australian dollar on the global market. For instance, if AUD JPY is trading at 84, it implies that it costs precisely 84 Yen to acquire one Aussie Dollar.
AUD JPY Chart
The AUDJPY chart, or more specifically, the AUDJPY price chart, will be the first tool that you will need to learn as a trader who uses technical analysis.
How to Read the AUDJPY Chart
When it comes to learning how to read the AUD to JPY chart, you’ll first need to have a great understanding of the basics before you can progress to more advanced stuff.
First, let’s touch on the difference between stock and forex charts. Unlike stock charts that only show the price of a specific asset, forex charts are always quoted in pairs and compare the value of one currency to another. For instance, the quote AUDJPY shows how many Japanese Yen you will need to get one Australian Dollar. The first, AUD currency, is called the base, while the second is called the quote. Now let’s move on to the forex chart, which is simply the graphical depiction of the exchange rate between two currencies (in this case, the AUDJPY.)
The time frame you use moving forward will largely depend on your preferences as a trader. If you tend to hold and trade for long-term profits, you’ll want to use the daily or weekly charts. If you’re a fast trader and tend to close positions in an hour or less, 15 or five-minute charts will be more useful.
On the vertical axis, you’ll find the AUDJPY exchange rate. The AUDJPY current price will be marked with a different colour and will move up and down when the markets are open to show you the updated price.
Let’s also talk about the different types of price charts in the forex market. These include the line chart, bar chart, and candlestick chart.
- A simple line chart draws a line from one closing price to the next. When these closing price points are strung together using a line, you will be able to see the general price movement of the AUD/JPY over a period of time.
- The bar chart, as the name suggests, is a bar and not really a chart. A bar chart shows the closing and opening prices, as well as the lows and highs, all of which will help you see the price ranges of each period. The vertical bar indicates the currency pair’s trading range as a whole, but the horizontal hash on the right side of the bar shows the closing price, while the hash on the left side shows the opening price.
- The candlestick chart is simply a variation of the bar chart. A candlestick chart shows the same price information that a bar cart offers, but in a prettier, graphic format. Most traders prefer the candlestick option because it’s also easier to read compared to the bar chart.
AUD JPY Historical Data
The AUDJPY historical data shows that the pair has experienced significant fluctuations over the years. This section of the guide will look at different historical points when both currencies had their moments.
AUDJPY Exchange Rate History
The Menji government introduced the Japanese Yen back in 1817, to replace the many metal currencies circulating throughout Japan at the time. The Australian Dollar, meanwhile, is a newer currency. Before the Aussie Dollar was introduced in 1966, Australia’s currency was the Australian Pound, which was pegged at parity to the GBP (British Pound Sterling).
After 1966, Australia decided to remain in the Sterling Area, with the new currency fixed to the British Pound Sterling at a £1 = $2. That said, when the British Pound got devalued against the USD in 1967, Australia decided to leave the Sterling Area and pegged itself to the USD. AUD then became a free-floating currency, and the AUDJPY began trading at 217.71 on December 13, 1983.
When Japan started experiencing its 25-year low economic growth rate in 1990 after the equity and real estate markets collapsed, the AUDJPY exchange rate was approximately 70. On October 01, 2007, the AUD to JPY exchange rate peaked at 107. 765. This was shortly before the 2008 subprime mortgage crisis that dragged the AUDJPY exchange rate to a low of 57.373 by February 2009.
AUD JPY Exchange Rate Today
The AUDJPY grew steadily in the first half of 2021, hitting a 52 week high of 85.79 in May 2021 before plummeting to 77.85 in late August 2021. AUDJPY attempted to resume an uptrend and climbed back to 82.03 on September 2, 2021, only to reverse again and fall to 78.84 by the end of the same month.
Since then, the currency pair has been highly volatile and was able to hit a new 52 weeks high of 86.06 in October 2021.
What Influences AUD JPY Exchange Rate?
Many factors influence the AUD JPY exchange on a daily basis. Here are the main ones:
- Regional economic, social or political factors in both countries
- US economic news, since fortunes of both Japan and Australia economies are closely tied to the United States’
- Fluctuations in oil prices, since Japan relies entirely on oil imports and Australia is a major oil exporter
- Monetary policy and interest rate announcements by either the Reserve bank of Australia (RBA) or the Bank of Japan (BOJ)
Note that since both currencies represent complex and highly globalized economies, lots of factors might impact their daily exchange rates.
AUD JPY Forecast and Predictions
Below are AUDJPY forecasts for the upcoming years.
|AUDJPY Predictions||2022 (Dec)||2023 (Dec)||2024 (Dec)||2025 (Dec)|
|The Economy Forecast Agency||88.36||88.92||83.29||80.78|
Why Trade AUD JPY Today?
Whilst AUD/JPY isn’t as popular as forex pairs involving the US dollar or the Euro for instance, there are still great reasons to consider trading it. Here are some of them:
- High sensitivity levels to global economic events, allowing for a degree of predictability
- There is a lot of AUDJPY correlation with certain commodities, like Brent Crude
- There is a strong AUDJPY correlation with other currencies
- Trading AUDJPY is a great way to diversify your forex portfolio with a fully Asia Pacific currency pair. This gives you exposure to a new market and reduces the risk of your portfolio overall.
Where Can I Invest in the AUDJPY Pair?
When trading a significant currency pair like AUDJPY, ensuring you pick a trusted and licensed forex broker is essential, such as ZFX. Besides being regulated by relevant authorities in all nations it operates in for added security, ZFX also provides all its traders with expert data and resources to help them make informed decisions.
If these crucial elements do not make ZFX arguably the most trusted forex broker out there today, I do not know what does.
How to Trade AUDJPY Now
Do you need help registering an account with ZFX? Follow this simple tutorial to get started.
Step 1: Open a ZFX Account
If you already have a reliable trading strategy and AUDJPY forecasts, visit ZFX’s homepage and hit the “Open an account” button. If you have neither and would like to experience risk-free trading training before investing your hard-earned cash, pick the “Try Demo” option. The Demo option will award you fake, virtual cash you can use to trade AUDJPY until you have working AUDJPY analysis and trading strategies.
Picking the “Open an Account” option will lead you to the electronic form above, where you will need to type in your personal details and hit the “Next” button when you’re done.
Step 2: Make Your First Deposit
Your account is ready, and to start AUD/JPY investing, all you need to do now is fund your ZFX account with the cash you had set aside for trading. You can choose to deposit funds using either a bank transfer or credit card.
Step 3: Verify Your Account
In order to comply with anti-money laundering and counter-terrorism financing laws, ZFX will need to confirm your identity and address. Submit your government-issued ID card and most recent utility bill (or bank statement). Then, ZFX will take around 24 hours to verify your details.
Step 4: Start Trading AUDJPY
Note that you’ll execute all your trades on ZFX using the MT4 platform. The software is available for all platforms, including iOS, Ubuntu, Windows, and Android. Download the version that matches your device and install it. Once installed, launch the application, log in using the details ZFX sent to your email. You can then start investing whenever you’re ready.
Tips for AUD JPY Beginner Traders
Here are a few tips for you to start trading AUD JPY in the best conditions.
What is the best time to trade AUDJPY?
You ought to note here that since AUDJPY is a minor currency pair, it can occasionally suffer from a severe lack of liquidity, implying that you may not be able to buy or sell exactly when you desire to if the demand isn’t there.
To mitigate this, trade during peak hours for both Japanese and Australian markets, which typically ranges between midnight and 6 AM GMT. This is when liquidity for AUDJPY is at its highest.
Have a reliable trading strategy in place
As a unique currency pair, AUDJPY requires a well-thought-out strategy to ensure successful trades. First, ensure you have a rigid stop loss and exit strategy in place when executing AUDJPY trades. After all, AUDJPY is a highly volatile currency pair, and a slight change can easily wipe out all your gains. Also, always keep a close eye on any announcements or news coming from either the BOJ or ARB.
Feel free to start with a demo account
Even experienced forex traders routinely use demo accounts to practice currency trading and test out new brokers or trading strategies. With that in mind, if you do not feel confident in your trading prowess or strategy, do not be afraid or too impatient to use a demo account first.
This will allow you to practice money management principles and techniques. A demo account will also allow you to test out some of the broker’s services and customer support. After all, you want to get a better sense of everything you’ll be getting yourself into before registering a live account with a broker or funding your account with real money. Note that ZFX offers all its customers a free demo account to practice their skills risk-free.
Bottom Line: Is AUDJPY a Good Investment Now?
AUDJPY tends to fly under the radar of even some of the most seasoned forex traders. However, that is a mistake. Indeed, this exciting currency pair is an optimal way to trade using more varied market fundamentals. It is also a great way to diversify your forex portfolio through exposure to the Asian Pacific market.
If you wish to start trading this forex pair today, you can do so with ZFX. Indeed, this broker gives you access to many benefits. These include a free demo account, high security, a wide range of educational tools and many financial assets for example.