• AUD/JPY holds lower ground after reversing from weekly top.
• Convergence of 21-DMA, 50-DMA precedes previous support line from early May to restrict immediate upside.
• Bearish MACD signals also favor the decline towards 50% Fibonacci retracement.

AUD/JPY bears keep reins after retaking control from crucial resistances, despite recent dribbling of around 92.60 during Friday’s Asian session.

That said, the cross-currency pair refreshed a one-week high the previous day before reversing from a confluence of the 21-DMA and the 50-DMA, as well as reversing from the resistance-turned-support stretched from May 12.

The pullback moves join bearish MACD signals to keep sellers hopeful.

However, the 50% Fibonacci retracement level of May-June upside, around 92.10, quickly followed by the 92.00 threshold, could challenge the AUD/JPY sellers.

It’s worth noting that July’s bottom near 91.40 and the 61.8% Fibonacci retracement level of 90.95 will precede the latest swing low close to 90.50 to restrict the cross-currency pair’s downside past 92.00.

Alternatively, recovery moves may initially confront the aforementioned DMA convergence of 93.75 before poking the previous support line surrounding 93.85.

Even if the AUD/JPY prices cross the 93.85 hurdle, the bulls need validation from the 94.00 round figure before retaking control.

AUD/JPY: Daily chart

Trend: Further weakness expected