Just spotted AUD/JPY breaking above 105.00 again, now sitting around 105.20. This is the third day the pair's been climbing, and it actually hit 105.37 earlier—highest since July 2024. The Aussie is getting some real tailwinds right now as risk appetite picks up across markets, mainly because US-Venezuela tensions seem to be cooling down a bit.

What's interesting is that AUD bulls are also getting support from expectations the RBA might not be done hiking. Economists are saying inflation could stay stubbornly high through next year, which means at least two more rate hikes could be on the table. We're waiting on Australia's November CPI data tomorrow to see if that thesis holds up.

But here's the thing—the upside for this pair could get capped pretty soon. The BoJ is looking more hawkish, and their governor Ueda just signaled they'll keep adjusting rates as conditions warrant. That means the Yen could start catching bids, which would limit how far the Aussie can run. Plus there's all this noise about potential Yen intervention and fiscal concerns in Japan that traders are watching closely. So while AUD momentum looks decent right now, I'm keeping an eye on what happens with the BoJ's next move.