• AUD/JPY continues scaling higher for the third straight day and climbs to a fresh multi-decade high.
• The risk-on mood undermines the safe-haven JPY and lends support amid hawkish RBA expectations.
• Speculations that the BoJ may act soon in response to the weakening JPY and cap any further gains.

The AUD/JPY cross gains positive traction for the third successive day and climbs to its highest level since May 1991, around the 109.35 area during the Asian session on Thursday. The momentum is sponsored by a combination of factors, though speculations that the Bank of Japan (BoJ) may raise interest rates in response to a weakening Japanese Yen (JPY) might cap any further gains. 

Moreover, a Bloomberg report on Tuesday said that the BoJ is conducting three in-person meetings with banks, securities firms, and financial institutions to assess a feasible pace for scaling back its purchases of Japanese Government Bonds. Meanwhile, Reuters reported on Wednesday – citing unnamed sources – that the BoJ will likely trim this year's economic growth forecast and project inflation will stay around its 2% target in coming years at its meeting later this month. Adding to this, the prevalent risk-on environment, which tends to undermine the safe-haven JPY and benefit risk-sensitive Aussie, is seen acting as a tailwind for the AUD/JPY cross