The AUD / JPY currency pair is one of the most important " cross pairs " without US dollar participation globally and can be traded consistently with high liquidity. The pairing plays only a limited role on the European market because the flow of goods and therefore the money flows between the euro zone and Japan and Australia do not match the size of USD, GBP etc.
The Japanese yen was valid Due to the Bank of Japan's low interest rate policy, which has existed for a long time as the classic carry trade currency, the Australian dollar is one of the Commodity Dollars due to the country's large resources. Trade in and from AUD JPY To benefit from an appreciation of the AUD, a long position must be opened. Investors who have contrary market expectations and expect the Japanese currency to appreciate must trade a short position in the Australian dollar Japanese yen.
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Characteristics of the currency pair AUD / JPY:
- Has less relevance compared to EUR, GBP and USD currency pairs
- Lower liquidity than EUR, JPY, USD currency pairs, but has a tendency good
- trading mainly takes place in the Asia session
- the Australian dollar tends to be stronger against the Japanese yen
- good reference for upcoming developments in rates with yen participation Trade
AUD / JPY with Forex: Process of a currency transaction
Positions can be opened and closed with a few mouse clicks via the trading platforms of FX brokers. Currency trading still functions behind the trading surface as it did a hundred years ago: an investor gets into debt in one currency, exchanges the loan for another currency and hopes that his liabilities will be devalued due to exchange rate changes. In the case of a long position, investors trading Australian dollars in Japanese yen do the following: First, a loan is taken out in JPY. All yen liquidity will be exchanged for AUD at the same time. If the investor's market expectations actually apply and the AUD appreciates against the JPY, the JPY loan can be repaid without having to use all of the AUD credit. This results in the profit of the trade.
When trading with the AUD / JPY currency pair, the trader speculates on an upward trend in the AUD currency.
AUD / JPY exchange rate in quantity and price quotation
If the Australian dollar Japanese yen exchange rate is given in the form "AUD / JPY" (AUD is on the left), AUD is the base currency. The exchange rate in the format of the quantity listing then indicates how many units JPY are paid for 1 AUD on the FX market. Alternatively, the format of the price quotation is sometimes used. The market value in price quotation is the reciprocal of the quantity quotation. It indicates how many units AUD are paid for 1 JPY.
Compared to price quotation, quantity quotation is one of the more common quotations for exchange rate pairs.
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A closer look at the Forex Real Time rates AUD / JPY
As a rule of thumb, Forex newcomers can remember: the further back a course development, the less important the reference to today's trading decision. By and large, historical data serve to develop an understanding of the development of the two currencies over time and to give rise to a possible trade feeling. Experience shows that historical data can give a last kick to trading implementation based on current market data, with the AUD / JPY currency pair reaching three lows in 1995, 2000 and 2008. The Australian dollar has shown a significant strengthening against the Japanese yen in recent years.
The AUD / JPY currency pair is primarily traded between 0:00 and 7:00 GMT. During this period, both the Tokyo session and the Sydney session are open at the same time. While the Tokyo session is open from 0 a.m. to 9 a.m.GMT, trading in the Sydney session is from 10 p.m. to 7 a.m.GMT. Important trading decisions affecting the AUD / JPY currency pair will primarily take place at simultaneously open exchange sessions.
Trading in the AUD / JPY currency pair proves to be in the hours between 0:00 and 7:00 GMT. Both the Tokyo and Sydney sessions are open in this time window.
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The fuzzy vector logic using the example of AUD / JPY currency explained step by step
- Fuzzy vector logic is a mathematical theory. In forex trading, this theory has become a popular method of making trading decisions. To use the fuzzy vector logic, a starting point must first be set in the current AUD / JPY diagram.
- Next, it is checked whether the data volume is fuzzy. Set acts by definition and membership functions, referred to in their quantity as fuzzy functions, can be used.
- Using the fuzzy vector logic, statements regarding existing highs, lows and expected price developments can be better
- When evaluating the fuzzy vector logic, the typical developments for the currency pair AUD / JPY are decisive. It is advisable to combine the fuzzy vector logic with other analysis methods and to compare it with the development of reference variables, such as the influences on the Japanese yen. The forex strategy should be selected in accordance with the results determined.
In times when the Japanese yen is particularly prominent, it is advisable to take a closer look at the currency pairs with yen participation before making the trading decision. For the formulation of the trading decision it is useful to look at the currency pairs NZD / JPY, CHF / JPY and GBP / JPY.
The fuzzy vector logic is recommended for the better determination of a trading decision. In order for the information of the fuzzy vector logic to gain meaningfulness, it is combined with empirical values and the exchange rate characteristics of the AUD / JPY currency pair.
For which traders is it worthwhile to trade this currency pair?
Trading in the Asia session is usually done when a high or low occurs or is signed. Due to the peak times of the Tokyo session and Sydney session at night and early in the morning, traders of this currency pair have to adjust to night and early shifts. Traders who are already prepared for the Japanese yen can use the exchange rate developments of the AUD / JPY currency pair to derive or detect early price changes in other pairs with JPY participation. In addition, it turns out that trading forex with AUD / JPY also depends on low forex costs, for example due to narrow spreads. Those who value high knowledge input and a lively transfer of knowledge can gain experience with the Forex Broker eToro. This offers a powerful Forex trading platform and an established trading community.
Forex beginners can gain initial experience in trading with AUD / JPY and thereby learn theories and functions such as the fuzzy vector Logic, get to know and apply. It is also possible to learn the relationships to other JPY or AUD pairs with this currency pair.
Conclusion: Good trading opportunities for AUD / JPY trading in the Asia session
If the currency pair AUD / JPY is not given the same attention as a currency pair with USD, EUR or GBP participation, it should not be underestimated. The relationship between the Australian dollar and the Japanese yen has its own special charm. This is reflected in the good tradability with regard to no price fluctuations that can be expected in everyday business.