AUD/JPY Turns Bullish Amid Improved Risk Sentiment and Monetary Policy Divergence

The AUD/JPY currency pair has turned bullish as of mid-June 2025, driven by improved risk sentiment and diverging monetary policy expectations between the Reserve Bank of Australia (RBA) and the Bank of Japan (BoJ).

A key driver behind this trend is the rebound in risk appetite, which benefits the Australian dollar as a higher-yielding currency. Meanwhile, the Japanese yen remains under pressure due to the BoJ's persistently accommodative stance.

Technical indicators show that AUD/JPY has formed a series of higher highs and higher lows, indicating an uptrend. The Relative Strength Index (RSI) is hovering around 60, suggesting there is room for further gains without being overbought.