AUD/JPY Price Forecast: Bullish tone remains intact near 97.50

• AUD/JPY weakens around 97.45 in Thursday’s early European session. 

• The positive outlook of the cross prevails above the 100-day EMA, with bullish momentum in the near term.

• The first upside target is seen at 97.75; the initial support level is located at 96.82.

The AUD/JPY cross loses ground to near 97.45 during the early European session on Thursday. The upbeat Japanese economic data, including the Reuters Tankan poll and revised Gross Domestic Product (GDP), keep the door open for an imminent Bank of Japan (BoJ) interest rate hike by the year-end. This, in turn, provides some support to the Japanese Yen (JPY) and acts as a headwind for the cross. 

Technically, the constructive outlook of the cross remains in play, with the price holding above the key 100-day Exponential Moving Average (EMA) on the daily chart. The path of least resistance is to the upside, as the 14-day Relative Strength Index (RSI) stands above the midline near 64.60. This indicates bullish momentum in the near term.

The key resistance level for AUD/JPY emerges at 97.75, representing the upper boundary of the Bollinger Band and the high of September 10. A run of green candles and steady trading above the mentioned level could open the door for a move toward 98.45, the high of January 27. The next hurdle is seen at 99.00, a round mark. 

On the flip side, if the cross draws in sellers and more red candlesticks show up, the price could head right back to 96.82, the low of September 9. Sustained trading below this level could expose 95.86, the low of August 29. The next contention level is located at 95.52, the 100-day EMA.

AUD/JPY Daily Chart