As you can see, AUD/JPY is currently trading 100 pip lower in the 96.50 region after being rejected from the 97.50 area.
Since the pair exploded up from the 90.50 region at the beginning of the month, that is likely the most respectable pullback from the pair!
The fact that the 100 SMA has crossed below the 200 SMA to indicate a potential bearish reversal makes the situation even more intriguing.
But hold on! You should be aware that AUD/JPY still has strong support at its current levels before executing any sell orders.
One thing is that a trend line support that has been in place since last week coincides with 96.25. The trend line's alignment with the S2 (96.28) of today's Standard Pivot Points doesn't hurt AUD bulls either.
The market themes for this week might make or break the June rise for AUD/JPY.
The People's Bank of China (PBOC) reduced two of its benchmark interest rates earlier today by 10 basis points in an effort to promote economic expansion.
Most traders considered the change to be "mid" and kept pricing in their worries about China's economic expansion.
It didn't help that the Reserve Bank of Australia's (RBA) meeting minutes were released. Even though the central bank increased interest rates this month, its members "finely balanced" the choice.
I'm planning to exit around today's lows, but I'll be monitoring any bearish momentum to see whether AUD/JPY breaks through the support of its trend line and hits new intraweek lows.
How do you feel? Is the AUD/JPY pair prepared for a brief reversal?
