AUD/JPY has managed to pare its daily losses, currently trading around 93.30 during Monday’s European trading hours. The currency pair faced pressure as the Bank of Japan (BoJ) is widely anticipated to increase rates further this year as part of its monetary normalization efforts.

Market participants need to remain vigilant as any news regarding interest rate changes from the BoJ could significantly impact AUD/JPY dynamics. Thus, potential investors should prepare for heightened volatility in this currency pair.