AUD/JPY has been moving towrds its five-month low around 78.00 forming a falling wedge pattern. The formation has 73% quality and 46% magnitude within 166 bars.
The pair rebounded from the resistance level at 81.69, then decreased to the 79.31 and slowed near 79.63. Present biases on hourly, 4-hour and daily time frames are neutral, which shows a balance between bulls and bears. SMA200 indicator was decreasing during last few weeks, increasing the possibility of downtrend extension. Bearish traders might focus their attention on the key level around 79.18. If the price breaks this level, the initial target for short traders might be around 78.40.
The Stochastic indicator tested its oversold area at 20% and rebounded to the 30% value, which leads to a possible short-term increase. If the price grows, long traders might pay attention to the resistance level 79.84 test. If the price breaches this level, the initial target for going long might be around 80.17, where the previous local high stands.