• AUD/JPY bears catch a breath after ruling for consecutive five days.
• A break of 61.8% Fibonacci, bearish MACD challenge October 2019 low.
• The confluence of 21-day SMA, 50% Fibonacci question the near-term upside.

AUD/JPY remains inside the 72.20/40 range, currently around 72.36, at the start of the Asian session on Thursday. The pair recently dropped to the lowest since October 10 after it broke 61.8% Fibonacci retracement of August-December 2019 upside.

In addition to its break of the key Fibonacci support, bearish MACD signals also favor the pair’s further declines. In doing so, October 2019 lows near 71.74 grab the market attention.

Should AUD/JPY prices keep the declining past-71.74, 71.00 and 70.80 can please the sellers ahead of pushing them towards August 2019 bottom of 70.32.

Alternatively, the pair’s pullback beyond 61.8% Fibonacci retracement level of 72.70 can take aim at February 07 low near 73.05.

However, a confluence of 21-day SMA and 50% Fibonacci retracement near 73.43/45 will challenge the buyers afterward, which if broken could escalate the recovery moves towards 74.00 and then to the monthly high surrounding 74.50.

AUD/JPY daily chart

Trend: Bearish