The AUD/JPY currency pair, which expresses the value of the Australian dollar in terms of the Japanese yen, is a popular barometer of risk sentiment in financial markets. This is mostly owing to Australia's positive interest rates in addition to its ongoing (and historical) association with commodities, which makes it a so-called commodity currency, alongside other currencies like the New Zealand dollar and the Canadian dollar.
In short, when global risk sentiment increases, commodities tend to rise and investors search for yield (positive interest rates), making currencies like the Australian dollar more attractive. That