AUD/JPY Price Analysis: Sellers eye three-month-old support line

• AUD/JPY stays depressed near the one-week low despite recently stabilizing above 77.00.
• Failures to cross an ascending trend line from February joined RSI’s return from overbought territory to favor the bears.
• 21-day SMA, rising support line from June 22 become the key as well.

AUD/JPY drops to 77.18 during the early Friday morning in Asia. In doing so, the quote seesaws near the lowest since August 28 during its fourth day of losses while keeping the latest trading range between 77.06 and 77.25.

Considering the pair’s pullback from the multi-month high, not to forget failures to cross the key resistance line amid previously overbought RSI, further weakness in the quote can’t be ruled out.

However, an ascending trend line from June 08, previous resistance, currently around 76.95, becomes the key support to watch, a break of which will direct sellers towards a 21-day SMA level of 76.69.

It should, however, be noted that the pair’s weakness past-76.69 will be challenged by an upward sloping support line from June 22, near 76.25.

On the contrary, 78.00 and the August month’s high, also the highest since May 2019, around 78.50 can entertain the bulls during the pair’s fresh upside ahead of an ascending resistance line from February 19, near 78.65.

AUD/JPY daily chart

Trend: Pullback expected