AUD/JPY edges lower on Wednesday following the previous day’s sell-off.
Pair remains under selling pressure for the past week.
Momentum oscillator holds onto the overbought zone with receding upside momentum.
AUD/JPY trades lower in the Asian trading hours on Wednesday morning. The pair fell in the previous session, which constitutes a fall of more than 90-pips. As of writing, AUD/JPY trades at 80.18, down 0.15% for the day.
Technically speaking, after rising from the low of 77.89 made on August 20, the pair came under selling pressure with the formation of an ‘Evening Star’ candlestick pattern on September 6.
The confirmation of downward momentum came once the formation is followed by the next red candle on the next day.
That being said, the break of the ascending trendline from the mentioned low level, while trading below the 20 and 50-day Simple Moving Averages (SMA) at 80.39 and 80.80 confirms the upcoming fresh selling wave in the pair.
AUD/JPY bear would enjoy the 79.80 horizontal support level as the first downside target.
The receding Moving Average Convergence Divergence (MACD) indicator fuels the probability of the next lower price movement toward the low made on August 27 at 79.41 followed by the 79.00 psychological level.
Alternatively, if the price pushes above the intraday high, it could test the 80.50 horizontal resistance level.
A successful close above the bullish slop line would result in testing the 50-day SMA at 80.80 followed by the 81.50 horizontal resistance level.