As you’ll be able to see, AUD/JPY bought rejected from the 97.50 space and is now buying and selling 100 pips decrease within the 96.50 zone.

That’s most likely essentially the most respectable pullback from the pair because it blasted up from the 90.50 space initially of the month!

What makes the setup much more fascinating is that the 100 SMA has crossed beneath the 200 SMA to sign a attainable bearish reversal.

AUD/JPY 15-min Foreign exchange AUD/JPY 1-hour Foreign exchange Chart by TV

However wait! Earlier than you pull the set off in your promote orders, you must know that AUD/JPY remains to be seeing respectable assist round its present ranges.

For one factor, 96.25 traces up with a development line assist that’s been legitimate since final week. It additionally doesn’t damage AUD bulls that the development line aligns with the S2 (96.28) of as we speak’s Commonplace Pivot Factors.

This week’s market themes might assist make or break AUD/JPY’s June uptrend.

Earlier as we speak, the Individuals’s Financial institution of China (PBOC) lower two of its benchmark rates of interest by 10 foundation factors to assist spur financial development.

Merchants principally felt the transfer was “mid” and continued to cost of their considerations about China’s financial development.

The Reserve Financial institution of Australia’s (RBA) assembly minutes didn’t assist both. Although the central financial institution raised its rates of interest this month, the choice was “finely balanced” amongst its members.

Dangerous information for many who anticipated a extra decisive vote that will have signaled additional price hikes within the foreseeable future.

Except we see market-changing headlines, I’m betting on world development considerations, expectations of weaker world PMIs, and fewer hawkish RBA expectations to proceed to weigh on AUD/JPY.

However AUD/JPY has already fallen by just below 100 pips as we speak, which tracks with the pair’s each day common volatility.

So, I’m seeking to brief after a little bit of an intraday pullback.

I might begin shorting at as we speak’s S1 (96.77) or look forward to the pair to retest the Pivot Level (97.22) nearer to the 100 and 200 SMAs.

I’m planning to take earnings someplace round as we speak’s lows however I’ll maintain my eyes peeled on any bearish momentum to see if AUD/JPY might break its development line assist and make new intraweek lows.

What do you suppose? Is AUD/JPY prepared for a short-term reversal?

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