AUD/JPY Price Forecast: Key upside barrier emerges near 97.00

• AUD/JPY gains traction to around 96.20 in Tuesday's early European session, up 0.53% on the day. 
• The cross keeps the negative outlook below the 100-period EMA with the bearish RSI indicator. 
• The initial support level is seen at 95.05; the key upside barrier to watch is 97.00. 

The AUD/JPY cross attracts some buyers to near 96.20 during the early European session on Tuesday. US President Donald Trump's decision to delay plans to impose trade tariffs on Canada and Mexico weighs on the safe-haven currency like the Japanese Yen (JPY). Nonetheless, the upside for the pair might be limited amid rising bets that the Reserve Bank of Australia (RBA) could consider a rate cut in February.

Technically, the bearish outlook of AUD/JPY remains in place as the cross remains capped below the key 100-period Exponential Moving Average (EMA) on the 4-hour chart. Furthermore, the downward momentum is supported by the Relative Strength Index (RSI), which is located below the midline, suggesting that the path of least resistance is to the downside. 

The lower limit of the Bollinger Band at 95.05 acts as an initial support level for the cross. A decisive break below the mentioned level could expose 94.62, the low of February 3. Further south, the next contention level is seen at the 94.00 psychological mark. 

On the bright side, the key resistance level for AUD/JPY emerges near 97.00, representing the 100-period EMA and the upper boundary of the Bollinger Band and round figure. Sustained trading above this level could pave the way to 97.95, the high of January 14. Extended gains could see the next hurdle at 98.34, the high of January 22. 

AUD/JPY 4-hour chart