AUD Struggles vs JPY Ahead of BoJ Rate Hike Decision

The Australian Dollar (AUD) has been struggling against the Japanese Yen (JPY) as investors await the Bank of Japan's (BoJ) monetary policy decision on Friday.

Currently trading around 110.55, the AUD/JPY cross remains caught between expectations of tightening in both economies and rising energy prices that are weighing heavily on Japan's imports bill.

The BoJ is widely expected to raise interest rates by 25 basis points, bringing borrowing costs to their highest level since April 1995, which would support the JPY and potentially limit AUD/JPY's gains.