AUD/JPY Technical Analysis: Weak China trade balance data highlights 77.70 support confluence

• Failure to cross 50-day simple moving average (SMA) on daily chart, coupled with disappointing China trade balance data, seems dragging the AUD/JPY pair currently towards south on early Friday.
• Sellers look for 77.70 as an important level as it shows a confluence between an upward slopping trend-line connecting lows since January 07 and 23.6% Fibonacci retracement level of its January – February moves.
• Should the pair drops under 77.70, it can quickly test 77.00 and head to 76.00 rest-point then after.
• However, 75.30/25 may limit the pair’s further downside.
• It’s worth pointing out that 14-bar relative strength index (RSI) is in the oversold territory and failure to break 77.70 can trigger the quote’s pullback to the 50-day SMA level of 78.40.
• In case prices rally beyond 78.40, descending trend-line at 78.95, followed by 79.00 and 79.35, can please the Bulls.

AUD/JPY 4-Hour chart