AUD/JPY Flat as Markets Await BoJ Rate Decision

The AUD/JPY cross is trading flat at around 110.20 during early European hours on Tuesday, ahead of the Bank of Japan's interest rate decision on Friday.

Markets expect the BoJ to raise its policy interest rate to 1.25%, the highest level in about 31 years, but MUFG analysts warn that a 25 bps hike is already almost fully priced.

A hawkish stance from the Reserve Bank of Australia (RBA) supports the Aussie, with RBA Assistant Governor Sarah Hunter saying inflation may need to be more persistent than expected for further rate hikes.