• AUD/JPY stabilizes around key support zone after falling the most in three weeks.
• 100-SMA, multiple levels marked in one week carve out 89.85-75 as important support.
• Clear break of 50-SMA, bearish MACD signals favor sellers.
• 50% Fibonacci retracement level guards immediate upside, bulls could regain confidence on breaking 91.00.

AUD/JPY pares the biggest daily loss in three weeks around 90.20 after failing to break the key 89.85-75 support zone the previous day. Even so, the cross-currency pair remains on the bear’s radar during early Friday in Asia.

That said, a downside break of the 50-SMA and the bearish MACD signals keep the quote as the bear’s favorite despite the latest consolidation.

However, a convergence of the 100-SMA and an eight-day-long horizontal support zone, around 89.85-75, appears a tough nut to crack for the AUD/JPY bears before they can extend the ruling.

Also acting as a downside filter is December 22, 2022, low near 89.30 and the 89.00 round figure.

Following that, the monthly low 87.41 and the previous month’s bottom surrounding 87.00 will be in the spotlight.

Alternatively, the 50% Fibonacci retracement level of the pair’s December 13-20 downturn, near 90.20, guards the immediate upside of the AUD/JPY before highlighting the 50-SMA hurdle of 90.35.

Even if the quote manages to stay beyond 90.35, the 61.8% Fibonacci retracement, also known as the “Golden ratio”, could challenge the AUD/JPY bulls around 90.95. It should be noted that the pair buyers may seek confirmation from the 91.00 threshold.

AUD/JPY: Four-hour chart

Trend: Further downside expected