Cross pair

AUD/JPY(Aussie Yen)

AUD/JPY is widely watched as the cleanest "risk barometer" pair in forex. It rises when global risk appetite is on (AUD strengthens) and falls during risk-off (JPY strengthens). Traders use it as a confirming signal alongside the S&P 500.

1.2 to 2.5 pips

Typical spread

70 to 110 pips

Daily range

$6 to $8 (varies with rate)

Pip value / lot

Asian + Sydney (5 PM to 5 AM ET)

Best session

What is AUD/JPY?

AUD/JPY pairs the Australian Dollar against the Japanese Yen. The pair is the classic risk-on / risk-off proxy in forex — AUD strengthens when global growth expectations rise, and JPY strengthens when risk appetite collapses. Combined, AUD/JPY mirrors the S&P 500 more cleanly than almost any other forex pair.

The pair trades on the 2-decimal pip convention. Daily ranges of 70 to 110 pips are typical, expanding to 200+ pips during major risk events. Many trend-following systems include AUD/JPY specifically because of its clean directional structure during risk regimes.

Base currency: AUD (Australian Dollar, Australia)
Quote currency: JPY (Japanese Yen, Japan)
Pip location: 2nd decimal (0.01) — yen-quoted
Volume share: about 1% of daily global forex turnover

When to trade AUD/JPY

AUD/JPY's prime window is the Sydney + Asian session (5 PM to 5 AM ET). RBA decisions, Australian data, BoJ events, and most Chinese economic prints drop during these hours. The pair often sets the day's range overnight by US time.

Avoid the late-NY window (3 to 5 PM ET) — Asian markets haven't opened, US is clearing, and the pair drifts in 10 to 25 pip ranges.

Best session: Asian + Sydney (5 PM to 5 AM ET)
Avoid: Late NY (3 to 5 PM ET)

News events that move AUD/JPY

RBA rate decisions, BoJ policy events, and Chinese GDP / PMI prints are the highest-impact scheduled events. Each can produce 80 to 150 pip moves.

Unscheduled drivers matter more here than on other pairs: risk-off events (equity selloffs, geopolitical shocks) reliably push AUD/JPY down 100+ pips. Risk-on rallies do the opposite. AUD/JPY's daily-close correlation with the S&P 500 is typically +0.6 to +0.8.

Central banks: Reserve Bank of Australia (RBA), Bank of Japan (BoJ)
Key releases: RBA rate decisions, BoJ rate decisions, Chinese data, Risk-on / risk-off equity moves, Australian CPI

Want the full event calendar? See the economic calendar, and look up unfamiliar terms in the forex glossary.

AUD/JPY FAQ

Why is AUD/JPY called a "risk barometer"?

AUD strengthens during risk-on phases (commodity demand, growth optimism), and JPY strengthens during risk-off (safe-haven flows). Together, AUD/JPY moves with global risk appetite more cleanly than almost any other forex pair. Its correlation with the S&P 500 is typically +0.6 to +0.8.

How does AUD/JPY correlate with the S&P 500?

Daily-close correlation is typically +0.6 to +0.8. When the S&P rallies, AUD/JPY tends to rise. When stocks sell off, AUD/JPY falls. Some traders use one as a confirming signal for the other.

When is the best time to trade AUD/JPY?

The Sydney + Asian session (5 PM to 5 AM ET). RBA decisions, Australian data, BoJ events, and Chinese economic prints all drop in this window. The pair often sets the day's range overnight by US time.

Is AUD/JPY volatile?

Moderately. Daily ranges of 70 to 110 pips are typical, expanding to 200+ pips during major risk events. Less volatile than GBP/JPY, more volatile than EUR/USD.

How does Chinese data affect AUD/JPY?

Strong Chinese growth data supports commodity demand and AUD, pushing AUD/JPY higher. Weak Chinese data does the opposite. Chinese PMI, GDP, and industrial production are key prints to watch.

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