AUD/JPY Price Forecast: Aims to revisit over three-month high around 95.70

• AUD/JPY holds onto gains near 94.10 ahead of Sino-US trade discussions.
• The RBA is expected to reduce interest rates in the policy meeting next month.
• The upwardly revised Japan's Q1 GDP data has offered support to the Japanese Yen.

The AUD/JPY pair clings to gains near a fresh three-week high around 94.10 during European trading hours on Monday. The pair trades firmly as antipodeans outperform across the board ahead of trade discussions between the United States (US) and China in London during the day.

The impact of the Sino-US trade talks outcome is expected to be significant on the Australian Dollar (AUD), given Australia's strong dependence on its exports to China.

On the domestic front, market experts believe that the Reserve Bank of Australia (RBA) could reduce interest rates for the third straight time by 25 basis points (bps) to 3.85%.

Though investors have underpinned the Australian Dollar against the Japanese Yen (JPY), the latter is outperforming its other peers on the back of an upward revision in the Q1 Gross Domestic Product (GDP) data.

Japanese Cabinet Office reported that the economy remained flat in the January-March period, compared to a 0.2% decline shown in the preliminary estimates.

AUD/JPY strives to extend its two-day winning streak at the start of the week. The cross holds the 20-day Exponential Moving Average (EMA), indicating a bullish near-term trend.

The 14-day Relative Strength Index (RSI) rises to near 60.00. A fresh bullish momentum would emerge if the RSI breaks above that level.

The pair could revisit the March 18 high of 95.70 and extend its upside beyond that towards the February 19 high of 96.77 if it manages to break above the May 15 high of 94.37.

In an alternate scenario, a downside move by the pair below the May 23 low of 91.65 could expose it to the April 29 low of 90.60, followed by the psychological level of 90.00.

AUD/JPY daily chart

indicating a bullish near-term trend