[LFX]

The AUD/JPY cross is poised to undergo at least a short-term price correction as the support trendline at 81.71 is currently under attack. A daily close below this level would generate a bearish breakout that would be amplified by the daily studies – which are losing upward momentum from overbought levels. This development would set the stage for a test of the key support trendline at 80.41 that dates back to February of this year. A daily close below this level would be a more important development as it would generate a bearish intermediate trend reversal that would project a deeper price correction toward 79.50 and 77.56. Prices will have to return above resistance at 83.80 in order to alleviate the downside risks that are building.