AUD/JPY Price Forecast: Extends the rally, first upside barrier emerges near 99.50

• AUD/JPY extends its upside to around 98.85 in Thursday's early European session. 
• The cross keeps the bullish view in the longer term, further upside looks favorable with the bullish RSI indicator. 
• The immediate resistance level is seen at 99.50; the first downside target is located at 97.84.

The AUD/JPY cross trades in positive territory for the fifth consecutive day near 98.85 during the early European session on Thursday. Hopes for ending the US-China trade war truce provide some support to the China-proxy Australian Dollar (AUD) against the Japanese Yen (JPY). 

US President Donald Trump said on Wednesday he expected to reach agreements with Chinese President Xi Jinping when they meet in South Korea next week. The talks could range from resumed soybean purchases by Beijing to limits on nuclear weapons.

Technically, the constructive view of AUD/JPY remains in place as the cross is well-supported above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is supported by the 14-day Relative Strength Index (RSI), which stands above the midline near 55.0. This suggests bullish momentum in the near term. 

On the bright side, the first upside barrier for the cross emerges at 99.50, the high of October 14. Any follow-through buying above this level could aim for the 100.00 psychological level and possibly retest the upper boundary of the Bollinger Band of 100.40.

On the downside, the initial support level for AUD/JPY is located at 97.84, the low of October 10. More bearish candlesticks below the mentioned level could pull the cross back toward 96.86, the low of October 2. The key contention level to watch is 96.65, the 100-day EMA 

AUD/JPY daily chart