AUD/JPY Price Forecast: Bullish tone remains intact above 97.00

• AUD/JPY attracts some sellers to near 97.10 in Friday’s Asian session.

• The cross keeps the bullish view in longer term, but further downside cannot be ruled out with bearish RSI indicator. 

• The key resistance level is seen at 98.50; the initial support level is located at 96.50.

The AUD/JPY cross extends the decline to around 97.10 during the Asian trading hours on Friday. The Japanese Yen (JPY) strengthens against the Australian Dollar (AUD) amid concerns over escalating US-China trade tensions and geopolitical uncertainties. However, political uncertainty in Japan could weigh on the JPY and act as a tailwind for the cross following the collapse of the ruling Liberal Democratic Party's (LDP) coalition with the Komeito. 

According to the daily chart, the positive view of AUD/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA). However, the 14-day Relative Strength Index (RSI) stands below the midline near 44.0, indicating bearish momentum. This suggests that further downside cannot be ruled out before positioning for any near-term AUD/JPY appreciation.

On the bright side, the first upside barrier for the cross emerges at 98.50, the high of October 16. The next resistance level is seen at 99.50, the high of October 14. Sustained trading above the mentioned level could see a rally to the 100.00 psychological level, en route to the upper boundary of the Bollinger Band of 100.35. 

On the downside, the crucial support level for AUD/JPY is located at 96.50, the 100-day EMA. The additional downside filter to watch is 96.15, the lower limit of the Bollinger Band. Any follow-through selling below this level could expose the 95.00-94.90 zone, representing the round mark and the low of August 4. 

AUD/JPY daily chart