AUD/JPY is a cross rate of the Australian dollar to the Japanese yen. While dealing with this instrument, the influence of the American dollar on each currency through their quotations with USD should be noted.
The currency pair AUD/JPY is quite stable as it consists of the high-yielding commodity currency and the save haven currency. The pair dynamics is mostly influenced by several factors such as the refinance rate differential between Australia and Japan, the purchasing capacity of importing countries, the state of world financial system and weather conditions.
The basis of the Australian economy is the export of minerals, energy products and agricultural products. Japan is one of the main Australian trading partners along with the USA and China. The rate of AUD, and of the currency pair accordingly, depends on gold prices.
Traditionally, the high-yielding Aussie rises against the low-yielding yen; and it makes a quite stable AUD/JPY trend for carry trade. Due to its high volatility and its sensitivity to world events, AUD/JPY is popular among aggressive trading strategists.