Bullish
AUD/JPY rises over 1% to near 112.05 after BoJ's historic rate hike to 1.25%.
The Australian Dollar (AUD) strengthened against the Japanese Yen (JPY) following the Bank of Japan's (BoJ) decision to raise its policy rate to 1.25%, the highest level since 1995. Despite the rate hike, AUD/JPY surged over 1%, reaching approximately 112.05, as markets had already priced in the BoJ's move and were disappointed by the lack of aggressive forward guidance. This outcome highlights the dominance of the interest rate differential between the Reserve Bank of Australia (RBA) and the BoJ, which continues to favor the AUD.
Key points
- AUD/JPY surges over 1% to near 112.05 after BoJ's historic rate hike to 1.25%.
- Markets had already priced in the BoJ's rate hike, leading to a muted reaction.
- Lack of aggressive forward guidance from BoJ officials contributes to market disappointment.
- Interest rate differential between RBA and BoJ continues to favor the AUD.
Sources
- Australian Dollar rises against Japanese Yen as BOJ raises policy rate to the highest since 1995FXStreet · September 18, 2026
- AUD/JPY Surges Past 111.00 as Markets Defy Historic BoJ Rate HikeTradeVisor · September 18, 2026
- AUD/JPY Price Forecast: Gains ground to near 111.00, but retains a bearish bias below 100-day SMAFXStreet · September 17, 2026
- AUD/JPY Price Analysis: Aussie Pulls Back to Support as BOJ Intervention StallsDailyForex · July 30, 2026
AI-generated from public news sources. Not financial advice.
