• AUD/JPY struggles to defend the corrective bounce off seven-week low.
• Ascending support lines from early January 2022 challenge bears amid nearly oversold RSI (14).
• Buyers need validation from two-month-old previous support line.

AUD/JPY licks its wounds around 89.70 during Friday’s Asian session as the cross-currency pair traders await the Bank of Japan (BoJ) Monetary Policy Meeting announcements, after refreshing a seven-week low the previous day.

Also read: Bank of Japan Preview: Kuroda’s and ultra-loose policy farewell

In doing so, the pair consolidates the previous day’s corrective bounce off an upward-sloping support line from late January 2022, around 89.50, amid bearish MACD signals. However, the nearly oversold RSI (14) challenges the AUD/JPY sellers from refreshing the multi-day bottom.

If at all the quote breaks the 89.50 support, the ascending support line connecting lows of late January 2022 and lows marked during the last December could act as the last defense of the AUD/JPY buyers, around 88.70.

Alternatively, recovery moves remain elusive unless the pair trades below the previous support line from early January 2023, close to 90.40 at the latest. That said, the 90.00 round figure restricts the immediate upside of the pair.

Should the AUD/JPY price remains firmer past 90.40, the late February lows near 91.30 may probe the buyers before directing them to the all-important 200-DMA hurdle, close to 93.10 at the latest, that holds the key for the pair’s further upside.

Overall, AUD/JPY remains bullish unless the pair breaks the multi-month-old support line near 88.70.

AUD/JPY: Daily chart

Trend: Limited downside expected