AUDJPY has formed lower highs and found support at the 93.00 major psychological level, creating a descending triangle pattern on its 4-hour time frame. Price just bounced off the resistance and looks due to test support again.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The pair is down to the 200 SMA dynamic inflection point, which might also hold as a floor around 93.75.

Stochastic has a bit more room to head lower before reflecting oversold conditions or exhaustion among sellers, so there could be some selling pressure left enough for a test of support. If the floor holds, AUDJPY could rebound to the top of the triangle once more.

RSI is on middle ground to reflect consolidation, but the oscillator also seems to be pointing lower to signal bearish momentum. Sustained selling pressure might even spur a break below support, sending AUDJPY lower by the same height as the chart pattern or around 250 pips.

Earlier today, Australia reported stronger than expected jobs data, as the economy added 32.2K positions in October. This was higher than the projected 15K increase and represented a rebound over the earlier 3.8K decline.

However, underlying data revealed that labor force participation dipped, possibly as a result of weaker confidence in the labor market.

There are no major reports due from Australia or Japan for the rest of the week, so this pair could move mostly based on market sentiment. Risk-taking could favor the higher-yielding Australian dollar, but Japanese authorities have been on edge when it comes to yen depreciation.

More jawboning or actual currency intervention from Japanese officials could bring AUDJPY lower or at least spur additional volatility like in previous instances.