Since the beginning of the year, the currency pair lost over 3.0% nevertheless last week also dropped more than 2.5% and is in a distribution phase since early February 2018.
Last week the AUDJPY dived with a wide range and closed near the low of the week, additionally managed to close below the previous week low, which suggests a strong bearish momentum.
The stochastic is showing a strong bearish momentum however is still above the 50 mid line.
The currency pair appears to be making a double top pattern and this previous week broke below the neckline so the target projection seems to be at 78.370 although looks like is holding above the 61.8 Fibonacci retracement.
Expecting an upward move to a Fibonacci retracement at 85.892 on a bounce from other Fibonacci retracement at 84.851 (scenario 1) however a bounce from the Fibonacci retracement at 85.892 may trigger another bearish run down to a Fibonacci retracement at 83.563 (scenario 2).