Carry Trades Accelerate in Australian Dollar vs Japanese Yen as Volatility Eases

Carry trade strategies targeting Australian Dollar vs Japanese Yen are gaining strong momentum amid easing market volatility to VIX 15 and reduced Bitcoin swings down 40% since early 2024. Building from a 12% YTD gain—the best start in three years—stable central bank policies and rising institutional flows have lifted carry volumes 25% in Q1 2025, with activity now at 15% of daily forex turnover per ECB data. Banks like Citigroup and Goldman Sachs endorse the trade citing AUD's 4.35% yield versus JPY's low rates, though sudden shocks pose risks.