AUD/JPY Holds Firm at 94.50 Amid Risk-On Sentiment After Israel-Iran Ceasefire

AUD/JPY Steady at 94.50 on Risk Appetite After Israel-Iran Ceasefire

June 25, 2025 – Forex Market Update
The AUD/JPY currency pair holds firm around 94.50 during Tuesday’s Asian session. This marks the third consecutive day of gains for the pair, buoyed by a resurgence in market risk appetite following a ceasefire between Israel and Iran.

Ceasefire Calms Geopolitical Nerves

US President Donald Trump announced a "complete and total" ceasefire, which was confirmed by Iranian media citing that the final wave of missile attacks ended before the truce began at 4:00 GMT. Despite Iran’s missile strike on the Al Udeid Air Base in Qatar, Qatari officials stated the missiles were intercepted and the base was evacuated ahead of time, minimizing risk sentiment disruption.

Markets also responded positively to the fact that Iran did not target the Strait of Hormuz, a critical oil transit chokepoint, maintaining calm in broader commodities and FX markets.

JPY Gains Limited Despite BOJ Hawkish Stance

While the Japanese Yen (JPY) typically gains during risk-off scenarios, its strength has been somewhat tempered by the prevailing risk-on mood. However, support for the Yen comes from reports that Bank of Japan (BoJ) policymakers may lean toward further monetary tightening, providing a tailwind for JPY.

What to Watch Ahead:

• Signals from BoJ on policy direction
• Ongoing geopolitical developments
• Australia’s macroeconomic indicators later this week

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