I think that the question is clear from the title:
Are there sets $A$ and $B$ such that $A \in B$ and $B \in A$?
My feeling is that the definition of any two such sets will be circular (we can't define $B$ till we define $A$ and we can't define $A$ till we define $B$), and hence will be excluded by some axiom.
On the other hand, I can't see an inherent contradiction, though I wouldn't be surprised if some form of Russell's paradox pops up, pushed behind one more set of braces.