AUD/JPY Price Analysis: Drops 0.40%, breaching three-week bullish trendline

• AUD/JPY drops below trendline rising from June 21 lows. 
• Yen draws haven bids on the resurgence of coronavirus cases. 

The lockdown fears fueled by the rising number of coronavirus cases in the US and the resulting risk-off in the US and Asian equities are pushing the anti-risk Japanese yen higher across the board. 

The AUD/JPY pair is trading in the red near 74.31 at press time, representing nearly a 0.40% decline on the day. 

The JPY cross has breached the ascending trendline rising from lows seen on June 21 and June 28, having dived out of a sideways channel early Friday, as seen on the 4-hour chart. The breakdown is backed by a below-50 or bearish reading on the 14-day relative strength index. 

As such, the pair risks falling to the psychological support of 74.00 ahead of the weekend. 

4-hour chart

Trend: Bearish

Technical levels