AUD/JPY Price Forecast: Retains bullish bias, first upside target emerges near 97.00

• AUD/JPY gathers strength to near 96.80 in Tuesday's early European session, adding 0.34% on the day. 
• The positive outlook of the cross prevails above the 100-day EMA, with bullish momentum in the near term.
• The first upside target is seen in the 96.95-97.00 region; the initial support level is located at 95.86.

The AUD/JPY cross attracts some buyers around 96.80 during the early European session on Tuesday. The Japanese Yen (JPY) softens against the Australian Dollar (AUD) amid the uncertainty over the likely timing of the next interest rate hike by the Bank of Japan (BoJ). The release of Australia's Gross Domestic Product (GDP) for the second quarter (Q2) will be in the spotlight later on Wednesday. 

Technically, the constructive outlook of the cross remains in play, with the price holding above the key 100-day Exponential Moving Average (EMA) on the daily chart. The path of least resistance is to the upside, as the 14-day Relative Strength Index (RSI) stands above the midline near 60.95. This indicates bullish momentum in the near term.

The immediate resistance level for AUD/JPY emerges in the 96.95-97.00 zone, representing the upper boundary of the Bollinger Band and a round figure. A run of green candles and steady trading above the mentioned level could open the door for a move toward 97.29, the high of July 28. The additional upside filter to watch is 97.43, the high of July 15. 

On the flip side, if the cross draws in sellers and more red candlesticks show up, the price could head right back to 95.86, the low of August 29. Sustained trading below this level could expose 95.21, the 100-day EMA. The next contention level is located at 95.00, representing the lower limit of the Bollinger Band and the psychological level. 

AUD/JPY Daily Chart