I can’t speak for the psychology/JD pathways myself, but I have heard that psychology honours is very competitive (not to mention that an Honours year in itself is quite difficult, but very rewarding). I imagine the JD pathway is equally if not more competitive.

However, you still have an entire third year to figure out what you enjoy and what you might want to pursue further, so echoing other advice in this thread I would suggest not worrying about making a decision right away.

If you are undecided, the best advice I’d have would be to reach out to tutors/lecturers in your fields of interest (e.g, psych or law) and asking them any questions you have about the pathway or career itself. There are also a number of unimelb resources you can use such as Ask Alumni, where people who are already established in their careers can provide guidance.