The AUD/JPY pair has been rallying since early April and occasionally has reversed creating a . This line has been tested especially on 5/7 through 5/11. This consolidation led to another rally which has since retraced and is now testing that . Price at the moment is at approximately the of the 5/11 price low (94.78) and the 5/13 price high (97.28) starting this week at 95.81.
SInce the rate cut in early May has not dissuaded traders from buying the Aussie instead of the Japanese Yen , we have no reason to believe this will change. Notes from the prior monetary meeting will be released on Monday but since we have already had the rate cut the notes will be anti-climactic. We should expect price will bounce here and higher prices are ahead in the AUD/JPY pair. See the chart