AUD/JPY Price Forecast: Constructive outlook remains intact near 110.00

• AUD/JPY strengthens to near 100.90 in Wednesday's early European session. 
• A constructive outlook prevails above the 100-day EMA, with the bullish RSI indicator. 
• The immediate resistance level is seen at 101.03; the initial downside target is located at 100.00.

The AUD/JPY cross gains ground to around 100.90 during the early European session on Wednesday. The Bank of Japan (BoJ) has been reluctant to commit to further interest rate hikes on the back of Japan's Prime Minister Sanae Takaichi's pro-stimulus stance. This, in turn, could undermine the Japanese Yen (JPY) against the Australian Dollar (AUD). However, verbal intervention from Japanese authorities might cap the downside for the JPY in the near term. 

Technically, AUD/JPY keeps the bullish vibe in the longer term 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 59.95. This suggests the path of least resistance is to the upside. 

On the bright side, the first upside barrier for the cross emerges at 101.03, the high of October 31. Sustained trading above the mentioned level could see a rally to the upper boundary of the Bollinger Band of 101.80. The next hurdle to watch is 102.30, the high of November 8, 2024. 

On the downside, the initial support level for AUD/JPY is located at the 100.00 psychological level. More bearish candlesticks below the mentioned level could pull the cross back toward 98.97, the low of November 7. Further south, the crucial contention level to spot is in the 97.65-97.60 zone, representing the lower limit of the Bollinger Band and the 100-day EMA. 

AUD/JPY Daily Chart