AUD/JPY Price Analysis: Drops below 78.00, MACD turns bearish for the first time in seven weeks

• AUD/JPY drops for the third consecutive day after refreshing multi-month top last week.
• Sustained break of 10-day SMA, one-month-old rising trend line joins bearish MACD to favor sellers.
• Bulls need to cross the 79.00 round-figure to retake controls.

AUD/JPY remains depressed around 77.96 amid the initial Asian session on Wednesday. The quote slipped below 10-day SMA and an upward sloping trend line from November 20 the previous day and extended losses afterward.

Not only the sustained break of the key technical support, now resistance, but bearish MACD also signals the further weakness of the AUD/JPY prices. MACD turns bearish for the first time since November 02.

Against this backdrop, 21-day SMA around 77.70 emerges as the immediate support ahead of November top near 77.10.

In a case where the AUD/JPY sellers keep the reins past-77.10, November 20 low near 75.40 could return to the charts.

Meanwhile, an upside below 78.40, comprising 10-day SMA and the previous support line, may not gain any major attention.

Also acting as the key resistance are the recent high near 78.85 and late-April 2019 high near 78.95 before the 79.00 round-figure gain market’s attention.

AUD/JPY daily chart

Trend: Further weakness expected