Ella 
AUD/JPY traded higher to 93.28 during the Asian session on Monday. AUD/JPY rebounded from a low of 92.83 after the Bank of Japan (BoJ) news and the People’s Bank of China cut interest rates.
According to Bloomberg, the Bank of Japan will directly purchase Japanese Government Bonds (JBS) in unlimited quantities (with a remaining maturity of 5 to 10 years) at a fixed rate starting August 22. In addition, the People’s Bank of China (PBoC) decided to cut the one-year loan prime rate (LPR) by 10 basis points to 3.45% from 3.555%, and left the five-year loan prime rate unchanged at 4.2%.
From a technical point of view, the 4-hour chart shows that AUD/JPY is within the line of the downtrend channel since mid-June. That said, AUD/JPY has the least downside resistance as it holds below the 50 and 100 hourly exponential moving averages (EMAs). Notably, the Relative Strength Index held below 50, supporting the sellers for the time being.
AUD/JPY first resistance is at 93.70 (50 hours EMA). The key resistance is at 94.00, the confluence of the 100 hourly EMA and the psychological round number. Another upside resistance to watch is 94.60 (the upper edge of the downtrend channel). If AUD/JPY breaks above this level and there is significant follow-through buying, AUD/JPY could rally to 94.90 (9th Aug high) before testing 95.40 (14 Jul high).
On the downside, AUD/JPY will meet initial support at 92.80 (18 Aug low). The next downside stops are at 92.55 (Jul 88 low), then at 92.15 (June 6 low). A break below this level would see AUD/JPY drop to 91.60 (lower boundary of the downtrend channel).
