An insertion layer is provided between an AFM layer and an AP2 pinned layer in a GMR or TMR element to improve exchange coupling properties by increasing Hex and the Hex/Hc ratio without degrading the MR ratio. The insertion layer may be a 1 to 15 Angstrom thick amorphous magnetic layer comprised of at least one element of Co, Fe, or Ni, and at least one element having an amorphous character selected from B, Zr, Hf, Nb, Ta, Si, or P, or a 1 to 5 Angstrom thick non-magnetic layer comprised of Cu, Ru, Mn, Hf, or Cr. Preferably, the content of the one or more amorphous elements in the amorphous magnetic layer is less than 40 atomic %. Optionally, the insertion layer may be formed within the AP2 pinned layer. Examples of an insertion layer are CoFeB, CoFeZr, CoFeNb, CoFeHf, CoFeNiZr, CoFeNiHf, and CoFeNiNbZr.