AUD/JPY Price Forecast: Constructive outlook remains in play above 98.00

• AUD/JPY flat lines around 98.05 in Thursday's early European session.
• The cross maintains a positive outlook, with the bullish RSI condition.
• The immediate resistance level is seen at 98.35; the initial support level is located at 97.28.

The AUD/JPY cross trades flat near 98.05 during the early European session on Thursday. Minutes from the Bank of Japan's (BoJ) July meeting revealed that board members expect the central bank to keep hiking if inflation and the economy move as estimated. The hawkish tone from the BoJ meeting Minutes could underpin the JPY in the near term. Nonetheless, concerns over political uncertainty in Japan ahead of the Liberal Democratic Party (LDP) leadership election scheduled for October 4 might cap the JPY's upside. 

Technically, the positive view of AUD/JPY remains in play as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The path of least resistance is to the upside, with the 14-day Relative Strength Index (RSI) standing above the midline near 63.50. This suggests the bullish momentum in the near term. 

On the bright side, the key upside barrier for the cross emerges at 98.35, the high of September 15. Further north, the next hurdle is seen at 98.65, the upper boundary of the Bollinger Band. A decisive break above this level could pick up more momentum and aim for the January 7 high of 99.17, en route to the 100.00 psychological level. 

On the other hand, the low of September 24 at 97.28 acts as an initial support level for AUD/JPY. Any follow-through selling below this level could expose 96.31, the low of September 3. The additional downside filter to watch is 95.90, the 100-day EMA.  

AUD/JPY daily chart