AUD/JPY Price Forecast: Bullish tone prevails, first upside barrier emerges near 99.50

• AUD/JPY trades flat around 98.50 in Wednesday's early European session.
• The cross keeps the bullish view, but the overbought RSI condition might cap its upside. 
• The key resistance level is seen in the 100.95-101.00 region; the initial support level is located at 99.16.

The AUD/JPY cross holds steady near 98.50 during the early European trading hours on Wednesday. Renewed trade tensions between the US and China, and persistent geopolitical tension might underpin safe-haven currencies like the Japanese Yen (JPY) and cap the upside for the cross.

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, the 14-day Relative Strength Index (RSI) hovers around the midline, indicating neutral momentum. This suggests that further consolidation or a temporary sell-off cannot be ruled out before positioning for any near-term AUD/JPY appreciation.

On the bright side, the first upside barrier for the cross emerges at 99.50, the high of October 14. The crucial resistance level is seen at the 100.00 psychological level. Sustained trading above the mentioned level could see a rally to the upper boundary of the Bollinger Band of 100.35. 

On the downside, the initial support level for AUD/JPY is located at 97.84, the low of October 10. The additional downside filter to watch is 96.86, the low of October 2. Any follow-through selling below this level could expose the crucial contention level at 96.25, the 100-day EMA.

AUD/JPY daily chart