AUD/JPY Price Analysis: Under pressure after rejecting descending trendline hurdle

• AUD/JPY drop as Aussie trade surplus narrowed sharply in September. 
• The pair risks falling to Wednesday's low, having failed to beat a key hurdle. 

AUD/JPY is currently trading near 74.68, representing a 0.43% decline on the day. 

The pair is feeling the pull of gravity a day after failing to pierce the trendline falling from Aug. 31 and Oct. 9 highs and following the release of the Aussie trade data early Thursday. At AUD 5.63 billion, Australia's September trade surplus bettered the forecast of AUD 3.7 billion but printed well below the preceding month's surplus of AUD 2,618 million. 

The sharp decline looks to be weighing over the Aussie dollar along with the heightened political uncertainty in the US. 

The rejection at the descending trendline hurdle has opened the doors for a re-test of Wednesday's early European session low of 74.07. A violation there would expose the Oct. 30 low of 73.14. 

A close above Wednesday's high of 75.48 is needed to confirm a bullish breakout. 

Daily chart

Trend: Bearish

Technical levels