22% cheaper: Why now is the best time to visit Japan
A Japan holiday has become significantly cheaper for Australians, with the Aussie dollar hitting its highest level against the yen since 1990.
Planning to a trip to Japan?
Travel Money Oz recommends budgeting 600,000 yen (JPY) per person for a multi-week, high-end holiday featuring everything from ski slopes and luxury accommodation to kabuki performances and fine dining.
At today's exchange rate, that works out to about $5355 Australian.
That's a significant saving compared with recent years. The same 600,000 yen budget would have cost Australians almost $6900 in 2023 and more than $8300 in 2019.
The savings are largely due to the Australian dollar's surge against the yen. Last month, $1 bought 114 yen, the strongest AUD/JPY exchange rate since 1990. While the rate has since eased slightly to around 112 yen, Australians still enjoy far greater spending power in Japan than they have for decades.
Why is the yen so cheap?
These helpful exchange rates have been delivered by a significant slide in the value of the yen, but also strong performance from the AUD.
"The Australian dollar is going quite well compared to other global currencies," says Dr Rand Low, associate professor of quantitative finance at Bond University.
"And the yen is particularly weak at the moment and that's due to multiple issues," he adds.
Dr Rand says one of these issues is the Japanese government's large amount of debt - worth 204% of its GDP - but adds deeper societal problems are also to blame:
"There are a lot of concerns about [Japan's] productivity because it's got an ageing demographic," he explains.
Tom Wickenden, investment strategist for trading platform Betashares says Japan's low interest rates - around just 1% - are also driving down its currency.
"[Japan has had] really low interest rates for a very long time," he says. "That tends to see currencies depreciate against its global peers".
A boom for travel
The timing is notable given Japan's booming popularity with Australians.
A record one million Aussies visited the country in 2025, 15% more than the year before, helping push Japan into third place among Australians' favourite overseas destinations.
Anhar Khanbhai, Asia-Pacific spokeswoman for travel money platform Wise, says the low yen has been "giving the Aussie dollar extra muscle on the ground in Japan right now".
"The yen has definitely been one of the most popular currencies on Wise in recent years," she says.
Khanbhai Wise's Aussie customers are watching the yen exchange rate closely, taking advantage of any upticks that might suddenly help their holiday budget go a bit further.
"As soon as we see the AUD strengthening against the yen, people are quickly converting and adding money, holding it and then booking their flights or accommodation".
How to manage your money overseas
1. Do your research
Read up on where you're going and see what currencies and payment methods they accept there. Few countries are as card-friendly as Australia and some may be predominantly cash-based.
2. Consider your Australian card
The credit or debit card you use day-to-day in Australia might not charge for foreign currency transactions or ATM withdrawals, so check the terms and conditions before buying a dedicated travel money card.
3. Compare travel money options
Look at the fees, exchange rates and currencies offered by different travel money cards and see which could work best for you.
More tips: See our guide to avoiding fees overseas.
While experts don't expect the favourable exchange rate to disappear overnight, they warn the yen is unlikely to weaken much further from current levels.
How long will the yen stay cheap for?
Experts say Aussies should be able to enjoy a strong dollar in Japan for the next several months at least.
"It's a good time to travel to Japan for the next year, maybe until the end of next year, because basically we don't see any signs from Japan of its policies changing any time soon," says Dr Rand.
But the low value of its currency is causing issues for Japan and countries it trades with.
Tom Wickenden from Betashares says this means we shouldn't expect the yen to drop much further from where it is now.
"We have started to see some intervention, both from Japanese and US politicians, to try and stop the yen weakening too much further," he says.
"[It's] an indication of a potential ceiling on the Aussie dollar to Japanese yen exchange rate".
How is the Aussie dollar going against other currencies?
It's not just the yen: the AUD is currently performing well against many of the currencies Aussies need for overseas holidays.
"We've also seen a strong AUD to US dollar," says Anhar Khanbhai from Wise.
"People can take advantage of that in popular regions like Latin America and Africa, where operators of bucket list experiences predominantly quote in and accept only US dollars".
The AUD is also strong against the Indonesian rupiah and the New Zealand dollar, making trips to Australia's two most popular travel destinations cheaper as well.
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