AUD/JPY continuing to shift lower ahead of RBA rate call

• Aussie, Yen trading quietly against each other, but the AUD is slipping.
• RBA statement could throw a wrench in the Aussie's works.

The AUD/JPY is hitting a positive note, trading into 82.40 after a steady decline in Monday's action.

The Aussie has struggled recently to develop momentum in either direction against the Yen, but Monday helped the pair break into a new three-week low and further develop a bearish correction in the pair.

The Australian AiG Performance of Manufacturing Index printed at 58.3 (prev. 63.1), a further decline in economic indicators for Australia, but traders are currently focused on the Reserve Bank of Australia's (RBA) Rate Statement due at 04:30 GMT. The RBA is widely expected to hold off on interest rate hikes until sometime in 2019, but the central bank is expected to drop their growth expectations this week, and markets will be keeping an eye out for the new numbers.

On the Yen side, the Nikkei Manufacturing Index came in at 53.8, a slight uptick from the expected 53.3, and the Yen is trading steadily so far with Japanese markets back in business after a long weekend.

AUD/JPY levels to watch

With the recent weakening in the AUD, the pair has been drifting off of April's highs at 84.07, and the current short side target will be the 50.0 Fibo level at the 82.00 major handle, with the ultimate target being a continuation of the major bear trend into March's low of 80.50, while a bullish continuation will have to mount the 50-day SMA at the 83.00 handle.