Sentiment worsened notably on Monday, leading to a decline in risk assets, such as the AUDJPY cross. At the time of writing, it was trading nearly 1% weaker, hovering at around 80.10.
The price is about to retest the major support of 80.00, where the psychological level is converged with the previous double bottom. The AUDJPY cross must defend this zone in order to remain in a medium-term uptrend.
If bulls are unsuccessful, larger stop losses of long positions could be hit below 80.00, potentially leading to another leg lower. The next target for bears could be at 79.60, afterward at 78.70.
Alternatively, if the dip buyers reemerge and defend the support, the first resistance is seen at 80.75, followed by another selling area of 81.60, where the Aussie has failed twice already.