AUD/JPY Price Analysis: Bears head toward yearly lows below 79.50

• AUD/JPY consolidates losses after the previous session’s heavy sell-off.
• A break below 79.50 invites more selling opportunities for the cross.
• Momentum oscillator holds onto the oversold zone with a bearish stance.

AUD/JPY edges lower in the Asian session. The pair fell for the consecutive fifth session heading toward yearly lows.

At the time of writing, AUD/JPY is trading at 79.47, down 0.04% for the day.

AUD/JPY daily chart

On the daily chart, after making a high at 84.19 on July 6, the AUD/JPY cross-currency pair has been under constant selling pressure. The descending trendline from the top acts as a defence for the bulls.

If price sustained below the intraday low at 79.44 it could fall back to January lows, with the first in line target at 79.20 made on January 28.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD could amplify the downside momentum. 

AUD/JPY weekly chart

In doing so, the sellers would test the low made January 5 at 79.01 followed by the 78.70 horizontal support level.

Alternatively, if price starts moving higher, it would march toward the first upside target at the 80.05 horizontal resistance level.

In doing so, the price action suggests further upside for the pair in the coming few sessions.

Next, AUD/JPY bulls would target the 80.50 horizontal resistance level.

A daily close above the mentioned level would open the gates for the high of August 13 at 81.15.

AUD/JPY additional levels