AUD/JPY: heavily pressured below 4hr 200 sma

AUD/JPY is on the offer with the Yen making tracks across the board while USD/JPY is back onto the 100 handle.

"The Japanese government is delivering the other half of its fiscal policy today," noted analysts at BBH adding, "Earlier, Abe decided to postpone the sales tax hike for the second time.  Today, the cabinet approved a JPY28 trillion (5.6%) of GDP package."  

"The market is looking past the headlines and is not impressed with the details.  The JPY4.6 trillion of measures (~1% of GDP) is a little bigger than last year's supplemental budget (JPY3.5 trillion).  The government project it will boost growth by 1.3% (but does not specify the period).  Many economists are skeptical.  Actual spending in Japan notoriously is a fraction of the budget amounts, and the multiplier effect seems to be small. "

Elsewhere, AUD/USD is consolidating after the supply that met the rally  post the RBA decision and announcements. The RBA cut rates to 1.5% overnight on the back of limited inflationary pressures and a moderate pace of economic growth.

AUD/JPY levels

AUD/JPY is targetting 76.20 to meet with 6th July highs while within the descending 4hr channel and pressured below the 200 sma on the same time frame at 77.87. 74.53 is the 5th July low as next objective. A break back to the 20 dma at 78.46 would alleviate downside pressures.