AUD/JPY Price Analysis: Looks south after biggest single-day decline since June 11

• AUD/JPY fell by 1% on Tuesday, forming a bearish engulfing candle. 
• Technical studies indicate scope for a drop to recent lows. 

AUD/JPY fell by 1.16% on Tuesday, confirming its biggest single-day percentage decline since June 11. On the day, the currency pair declined by over 2%. 

Further, Tuesday's decline reversed Monday's gain and formed a bearish engulfing candle on the daily chart. 

That candlestick pattern indicates the bounce from the Sept. 24 low of 73.97 has ended, and the bears have regained control. 

That, alongside a bearish or below-50 reading on the 14-day relative strength index, suggests scope for a re-test of recent lows. 

The bias would turn bullish if the pair finds acceptance above 76.16 (Tuesday's high). 

Daily chart

Trend: Bearish

Technical levels