Since the beginning of the year the currency pair lost almost 2.5% plus last week fell more than 0.5% and remains in a bearish phase since mid-May.
Last week the AUDJPY fell with a narrow range and closed near the low of the week, in addition managed to close below the previous week low, which suggests a strong bearish momentum.
After the up run since mid- 2016 the currency pair stage a downward correction toward the confluence of the 50-week moving average and the 38.2 Fibonacci retracement that should provide a strong support and potentially held a bounce back in the direction of 2017 high.
The stochastic is showing an oversold market although is still displaying a strong bearish momentum.
Expecting an upward move to the Fibonacci retracement at 84.458 (scenario 1) or even up to lower band of a weekly resistance at 86.392 (scenario 2) on a break above the previous week high at 82.963.