AUD/JPY Price Forecast:  Keep bullish vibe above 97.00

• AUD/JPY declines to around 97.15 in Tuesday'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 97.45; the initial support level is located at 96.31.

The AUD/JPY cross loses ground to near 97.15 during the early European session on Tuesday. The Japanese Yen strengthens against the Australian Dollar (AUD) after US President Donald Trump signed an executive order last week to lower the Japanese auto import tariff. Nonetheless, Japan's Prime Minister Shigeru Ishiba announced his resignation over the weekend, raising concerns over political uncertainty in Japan. This could weigh on the JPY in the near term.

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. Additionally, the upward momentum is supported by the 14-day Relative Strength Index (RSI), which stands above the midline near 62.80. This indicates bullish momentum in the near term.

The immediate resistance level for AUD/JPY emerges at 97.45, the high of September 8. 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 96.31, the low of September 5. Sustained trading below this level could expose 95.35, the 100-day EMA. The next contention level is located at 94.82, the lower limit of the Bollinger Band. 

AUD/JPY Daily Chart