AUD/JPY Price Analysis: 79.20 holds the key to further downside

• AUD/JPY seesaws around nine-month low, mildly bid of late.
• Failures to provide daily closing below important horizontal support and 50% Fibonacci retracement join oversold RSI to test bears.
• July’s low guards recovery moves, 61.8% Fibonacci retracement adds to the downside filters.

AUD/JPY prints 0.09% intraday gain while taking rounds to 79.50 amid the initial Asian session. In doing so, the cross-currency pair stays around the lowest levels in 2021, marked the previous day.

It should be noted, however, that the quote’s failures to slip beneath November 2020 low challenges the further downside amid oversold RSI conditions.

Hence, a corrective pullback towards the previous month’s low near 79.85 can be expected. However, any further recoveries will be tested by the early August bottom surrounding 80.15.

It’s worth mentioning that the AUD/JPY bulls remain unconvinced until the quote stays below the 200-DMA level of 81.82.

On the contrary, a daily closing below 50% Fibonacci retracement level of October 2020 to May 2021 upside, near 79.45, will keep the pair sellers battling to the stated support line near 79.20.

Though, a clear downside break of 79.20 will make the AUD/JPY prices vulnerable to drop towards the mid-December 2020 tops near 78.80 and then to 61.8% Fibonacci retracement levels near 78.00.

AUD/JPY: Daily chart

Trend: Corrective pullback expected