The bearish sentiment has prevailed AUD/JPY since mid-September. This has sent the pair for a decline in a descending channel. The Aussie bounced off the upper boundary of this pattern on December 5 prior to initiating a new wave down. It seems that a short-term channel has formed; however, the rate should still provide another confirmation of its upper boundary by edging lower. Technical indicators suggest that it could be the most likely option in this session. In order to fulfill this assumption, the Aussie still needs to breach a significant support area set by the 200-, 100– and 55-hour SMAs circa 86.30. In general, a possible downside target during the first part of this week could be the 84.10 territory. In case the rate continues to fall even further, it might aim for the lower boundary of the senior channel circa 82.50.
