AUD/JPY Price Forecast: Bullish outlook remains intact near 97.50

• AUD/JPY strengthens around 97.40 in Friday's early European session. 
• The cross maintains a positive outlook, but further consolidation cannot be ruled out with the neutral RSI indicator. 
• The immediate resistance level is seen at 98.15; the initial support level is located at 97.00.

The AUD/JPY cross gains momentum to near 97.40 during the early European session on Friday. The Japanese Yen (JPY) softens against the Australian Dollar (AUD) amid the political uncertainty in Japan. The ruling Liberal Democratic Party (LDP) prepares to elect its new leader on Saturday.  The new Prime Minister will influence the trajectory of Japan's fiscal policy and drive the JPY in the near term.

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, further consolidation or temporary sell-off cannot be ruled out as the 14-day Relative Strength Index (RSI) hovers around the midline. This suggests the neutral momentum in the near term. 

On the bright side, the high of September 30 at 98.15 acts as the key upside barrier for the cross. Sustained trading above the mentioned level could pave the way to Sustained trading above the mentioned level could pave the way to 98.40, 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 downside, the initial support level for AUD/JPY is located at 97.00, the round figure and the lower limit of the Bollinger Band. Any follow-through selling below this level could expose 96.10, the 100-day EMA. The next contention level to watch is 95.63, the low of July 22. 

AUD/JPY daily chart