As you can see, AUD/JPY has been rejected from the 97.50 area and is now trading 100 pips lower at the 96.50 area.
This is probably the most favorable decline for the pair since it took off from 90.50 at the beginning of the month!
What makes the setup more interesting is that the 100 SMA has crossed below the 200 SMA to indicate a possible bearish reversal.
AUD/JPY 15 minutes Forex AUD/JPY 1 hour Planned by TV
But wait! Before you pull the trigger for your sell orders, you should know that the AUD/JPY is still seeing decent support around its current levels.
For one thing, 96.25 lines up with the trend line support that has been in effect since last week. It also doesn’t hurt the Aussie bulls that the trend line aligns with S2 (96.28) of today’s record pivot points.
This week’s market themes may help make or break the AUD/JPY uptrend in June.
Earlier today, the People’s Bank of China (PBOC) cut two benchmark interest rates by 10 basis points to help stimulate economic growth.
Traders mostly felt that the move was “midThey continued to appreciate their concerns about China’s economic growth.
The RBA meeting minutes didn’t help either. Although the central bank raised interest rates this month, the decision was “finely balanced” among its members.
Bad news for those who expected a more decisive vote that would signal more rate hikes in the foreseeable future.
Unless we see changes in the market, I would bet global growth concerns, a weaker global PMI outlook, and a less hawkish outlook from the RBA will continue to weigh on AUD/JPY.
But the AUD/JPY currency pair has already dropped just under 100 pips today, which is in line with the currency pair. Average daily fluctuations.
So, I am looking to sell after a bit of a pullback during the day.
I can start selling at S1 today (96.77) or wait for the pair to retest the pivot point (97.22) near the 100 and 200 SMAs.
I plan to take profits somewhere near today’s lows, but I will keep my eye on any bearish momentum to see if AUD/JPY can break trendline support and reach new lows during the week.
what do you think? Is AUD/JPY ready for a short-term reversal?
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