AUD/JPY Price Analysis: Further selling awaits break of key support lines

• AUD/JPY consolidates heaviest losses marked since mid-November to regain 79.00.
• Failures to reach 80.00, amid overbought RSI, favored sellers.
• Ascending trend lines from November, 21-day SMA offer immediate key support.

AUD/JPY keeps bounce off 78.85, currently around 79.08, during the early Tuesday morning in Asia. The quote marked heavy losses the previous day amid a broad risk-off mood.

Read: AUD/USD: Risk off triggers pullback to sub-0.7700 area, covid woes in focus

While previously overbought RSI conditions and failures to meet the 80.00 threshold lured AUD/JPY sellers amid fresh risk aversion, bears have recently been cautious as key supports remain untouched.

That said, an upward sloping trend line from November 02, at 78.84 now, offers immediate support to the quote before highlighting another support line, from November 20, that joins 21-day SMA around 78.60 to restrict AUD/JPY declines.

In a case where the quote drops past-78.60, an area comprising the early November tops and 50-day SMA close to 77.10/05 will be the key to watch.

Alternatively, the corrective pullback may again aim for the 80.00 round-figure but AUD/JPY buyers will remain cautious ahead of that.

It should also be noted that sustained trading beyond 80.00, enables the pair to probe April 2019 top surrounding 80.75.

AUD/JPY daily chart

Trend: Corrective pullback expected