• AUD/JPY may lose ground as risk aversion rises, driven by renewed tariff threats from US President Donald Trump.
• Trump stated that China would face tariffs, with his administration actively working on their implementation.
• Tokyo’s Consumer Price Index climbed to 3.4% YoY in January, reaching its highest level since April 2023.

AUD/JPY halts its two days of losses, trading around 96.00 during the Asian hours on Friday. However, the upside of the AUD/JPY cross could be restrained as the Australian Dollar (AUD) may struggle amid the increased likelihood of the Reserve Bank of Australia (RBA) rate cut in February.