The AUDJPY currency pair is closely related with the trade conditions between Australia, Japan and other Asian countries
The AUDJPY market reflects the value of one Australian Dollar (AUD) in terms of Japanese yens (JPY). Both AUD and JPY are among the most heavily traded on the global currency markets, belonging to the top five of the most liquid currencies.
The Australian Dollar accounts for 7.6% of the global turnover, which is less than half of the 19% of global turnover that the Yen accounts for.
This currency pair is quite significant in respect to the Asian and Australian markets, as Japan and Australia have close economic relations. This currency pair is also subject to world economic standing, especially when it comes to commodities. The Australian Dollar is very sensitive to commodity prices, due to its significant value of exports related to commodities, minerals and fuels being the main exported products from Australia (especially coal).
Rule of thumb
Some of the market participants may follow the AUDJPY market, and the difference of interest rates between Australia and Japan, looking for carry trade opportunities