AUD/JPY is down by 0.7% amid the more negative risk mood
The pair is sitting close to the 74.00 level currently as the aussie is trading near its lows for the day as we navigate through the European morning.
As things stand, sellers are threatening a break under the 100-day MA (red line) @ 74.37 as well as a key trendline support @ 74.27. Currently, price is just sitting around the 38.2 retracement level @ 74.03 as seen above.
The confluence of key support levels as noted above makes any downside break below 74.00 particularly damaging to buyers - from a technical perspective.
Further support is only then seen at the 8 January low @ 73.76 before the support region around 73.25-50 is seen next.
Looking ahead this week, the pair will be largely driven by fears surrounding the coronavirus outbreak and how risk will react to that in general. Among other things, just be wary of tech earnings in Wall Street and also the Australian jobs report on Thursday.
But if the virus situation continues to get worse, I reckon fear will continue to win out as the element of uncertainty will remain present and weigh on risk trades as such.
