Ella 
The AUD/JPY pair extended gains for a third consecutive day on Wednesday after paring intraday losses. In addition, the consumer price index (CPI) data released by the Australian Bureau of Statistics (ABS) on Wednesday was better than expected, providing guidance for the outlook for the Reserve Bank of Australia’s monetary policy. This boosted the Australian dollar (AUD), which boosted the AUD/JPY cross.
AUD/JPY found upside support on improving market risk appetite, while the ASX 200 Index moved higher, particularly driven by gains in technology and healthcare stocks. The Australian share market followed a positive trend from Wall Street on high sentiment, boosted by strong corporate earnings reports. In addition, the easing of tensions in the Middle East also contributed to the positive market sentiment.
The yen’s weakness comes as bond yield spreads between Japan and many other major countries widen, leading traders to borrow in yen in search of higher yields in other assets. Despite this trend, Japanese authorities have not yet intervened to buy yen. Japan is likely not to intervene in currency markets until at least next week as the Bank of Japan (BoJ) begins a two-day policy meeting on Thursday.
