The AUD/JPY currency pair, which expresses the value of the Australian dollar in terms of the Japanese yen, typically correlates positively strongly with market risk sentiment. The Australian dollar, or AUD, is associated with risk-taking activity (especially as Australia is a key exporter of commodities), while the Japanese yen, or JPY, is viewed as a geopolitical safe haven (owing to Japan's relative political stability and current account surpluses).
In addition to the conventional factors that govern AUD/JPY, the positive correlation between the pair tends to find additional support and longevity as a result of a