AUD/JPY bounces after hitting 15-month lows on intense flight to safety

AUDJPY News

AUD/JPY bounces after hitting 15-month lows on intense flight to safety
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Having tested offers briefly above 95.00 in the Asian session, AUD/JPY has turned south, witnessing a steep sell-off in the European session on Monday.

AUD/JPY rebounds after crashing to 15-month lows near 90.00. Risk-aversion remains in full steam, as Iran is likely to attack Israel. The Japanese Yen keeps rallying on safe-haven flows at the expense of the higher-yielding Aussie. Heightening risk-aversion across the financial markets contributed to increased flight to safety in the Japanese Yen while traders cut their exposure in the higher-yielding currency – the Australian Dollar.

Risk sentiment FAQs What do the terms'risk-on' and 'risk-off' mean when referring to sentiment in financial markets? In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets.

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