AUD/JPY: Signs of indecision ahead of the RBA SoMP

• Back-to-back doji candles indicate indecision in the marketplace.
• RBA's SoMP to provide updated forecasts and discussion on growth and inflation.

The AUD/JPY pair created doji candle yesterday for the third straight day, signaling indecision in the marketplace.

When viewed against the backdrop of the pullback from 84.08 (April 13 high), the doji candles signal bearish exhaustion. That said, only a convincing move above 82.65 (Wednesday's doji candle high) would put the bulls back into the driver's seat.

Focus on RBA's SoMP

The speculation that the RBA may hike rates sooner than expected could gather pace if the central bank upgrades its language on 2019 and 2020 inflation forecasts. In this case, the AUD/JPY will likely move above 82.65.

AUD/JPY Technical Levels

As of writing, the pair is trading around 82.51 (50-day moving average). A move above 82.65 (May 2 high) would open the doors to 83.00 (psychological hurdle) and 83.32 (Feb. 14 low). On the other hand, a break below 81.75 (previous day's low) would mean the pullback from 84.08 has resumed and may allow a deeper sell-off towards 80.83 (April 2 low) and possibly to 80.50 (March 23 low).