The lower than expected Chinese PMI have led to some modest risk-aversion in the markets and the stronger than expected Japanese Tankan have given the Yen a boost; add all of this up and we have increased pressure on AUD/JPY.
The pair has been stuck steadily between previous highs at 97.50ish and psychological/physical barrier at 100.00 for the last few weeks and we are currently witnessing another downside test. I’d expect there to be some significant stops now below 97.25.