AUD/JPY Price Analysis: Critical support near 80.05 forms double bottom

• AUD/JPY edges lower on Tuesday following the previous session’s downside momentum.
• Additional losses visible for pair, if price decisively breaks 80.05.
• Momentum oscillator holds onto the oversold zone with a bearish stance.

AUD/JPY edges lower in the Asian session. After witnessing a heavy sell-off on Monday, the cross remains vulnerable near the lower levels.

At the time of writing, AUD/JPY is trading at 80.01, down 0.17% for the day.

AUD/JPY daily chart

On the daily chart, the AUD/JPY pair has taken the support near the double bottom formation around 80.05. After breaking the 20-day Simple Moving Average (SMA) below 84.57 on June 17, the pair has been under continuous selling pressure.

If price sustained below the intraday low at 80.01, it could fall back to the previous session’s low of 79.89.

The Moving Average Convergence Divergence (MACD) indicator trades in the oversold zone. Any downtick in the MACD could amplify the downside momentum. 

In doing so, the sellers would test the low made February 2 at 79.54. level followed by 79.25 horizontal support level.

Alternatively, if price starts moving higher, it would march toward the first upside target at the 80.40 horizontal resistance  level

In doing so, the price action suggests further upside for the pair in the coming few sessions.

Next, AUD/JPY bulls would target the high the previous day’s high at 80.88.

A daily close above the mentioned level would open the gates for the 80.10 horizontal resistance level.

AUD/JPY additional levels