AUD/JPY Price Analysis: Bullish correction on the cards before bearish-extension

• AUD/JPY bears are in control below critical weekly support.
• Bulls might enjoy some relief in a meanwhile correction in a downside channel. 

AUD/JPY is in the hands of the bears and below bearish structure as the price deteriorates on weakness in the Aussie as well as in risk sentiment. 

The yen has attracted a bid of late which has helped the risk barometer currency pair to suffer further below weekly support which has now been broken. 

The following is a top-down analysis that gives rise to further bearish prospects but does not rule out, and in fact, does require a bullish correction in the meantime. 

Monthly chart

As can be seen, the monthly chart has a downside target for the 38.2% Fibonacci retracement level for which allures further supply. 

Weekly chart

The weekly time frame offers the prospects for a downside channel and a restest of the recently broken support structure that is now expected to act as resistance. 

Daily chart

The daily time frame offers the potential of a slight continuation to the downside prior to a significant Fibonacci retracement and the confluence of the said new resistance structure.