AUD/JPY Continues to Defend Monthly Low

AUD/JPY continues to defend the monthly low (91.42) as it extends the rebound from last week, with a move/close above the 92.80 (50% Fibonacci extension) to 93.30 (23.6% Fibonacci extension) zone bringing the 95.10 (38.2% Fibonacci extension) to 95.20 (23.6% Fibonacci extension) region on the radar.

A breach above the monthly high (95.65) may lead to a test of the March high (95.75), with the next area of interest coming in around the February high (97.34).

At the same time, lack of momentum to trade above the 92.80 (50% Fibonacci extension) to 93.30 (23.6% Fibonacci extension) zone may push AUD/JPY back toward the monthly low (91.42), with a break/close below the 91.50 (61.8% Fibonacci retracement) to 91.70 (38.2% Fibonacci extension) region opening up 90.50 (61.8% Fibonacci extension).

--- Written by David Song, Senior Strategist at FOREX.com