AUD/JPY finds bids ahead of the RBA

• AUD/JPY up, possibly due to gains in the S&P 500 futures.
• RBA likely to keep rates steady and maintain a neutral stance.

The S&P 500 futures are on the rise in Asia, indicating the stock markets will likely regain poise today, despite growing odds of a full-blown US-China trade war.

Consequently, the anti-risk JPY is giving up overnight gains. As of writing, the AUD/JPY is reporting 0.30 percent gains and the S&P 500 futures are up 0.40 percent.

The Reserve Bank of Australia (RBA) is expected to keep rates unchanged and will likely retain the neutral stance. So, the AUD/JPY could look through the rate decision and continue tracking the S&P 500 futures, unless the central bank surprises with a hawkish/dovish stance.

AUD/JPY Technical Levels

The pullback from 81.97 (March 28 high) to 80.83 has neutralized the immediate bullish outlook, although only a close below 80.50 (recent low) would revive the bearish outlook and expose support at 80.00 (psychological support) and 79.21 (January 2016 low).

On the higher side, a clear move above 81.97 (March 28 high) would add credence to bullish RSI divergence seen on the daily chart and may yield rally to 82.58 (March 21 high) and 83.95 (50-day MA).