The Australian dollar hit a notable high against the Japanese yen, reaching 110.79 yen on Monday—a level not seen since 1986. This surge in the currency value has positioned Japan as an increasingly affordable travel destination for Australians, leading to a significant rise in the number of tourists. The favorable exchange rate allows travelers to enjoy the benefits of cheaper accommodations, dining, and activities during their visits.

In 2025, the number of Australians visiting Japan officially surpassed one million for the first time, according to Japan's tourism agency. This milestone highlights the growing interest of Australians in traveling to Japan, spurred by the strong currency and a variety of attractions that the country offers. Foreign exchange analysts, including NAB's Head of FX Strategy, Ray Attrill, note that such a favorable exchange rate may contribute to sustained growth in tourism as more Australians consider Japan for their travel plans.

Despite the optimistic outlook, analysts caution that currency movements can be unpredictable, and continued strength of the Australian dollar against the yen is not guaranteed. Tourists currently benefiting from this advantageous exchange rate should consider the potential for fluctuations in the future, which may impact travel costs. Overall, the current climate presents a unique opportunity for Australians to explore Japan at a lower financial barrier than in previous years.