AUD/JPY Price Forecast: Remains under selling pressure below 98.00, oversold RSI condition eyed

AUD/JPY tumbles to near 97.75 in Friday’s early European session, losing 0.73% on the day. 

The negative outlook of the cross remains in play, but further consolidation cannot be ruled out amid oversold RSI condition. 

The first downside target to watch is 97.45; the immediate resistance level is seen at 98.76. 

The AUD/JPY cross attracts some sellers to around 97.75 during the early European trading hours on Friday. The Japanese Yen (JPY) gains momentum after data released on Friday showed that Japan’s Tokyp Consumer Price Index (CPI) accelerated for the first time in three months, supporting the case for another interest rate hike by the Bank of Japan (BoJ) in December. 

According to the 4-hour chart, the bearish sentiment of AUD/JPY remains intact as the cross holds below the key 100-period Exponential Moving Average (EMA). The downward momentum is supported by the Relative Strength Index (RSI), which stands below the midline. Nonetheless, the oversold RSI condition indicates that further consolidation cannot be ruled out before positioning for any near-term AUD/JPY depreciation.

The initial support level for the cross emerges near the lower limit of the Bollinger Band at 97.45. Further south, the next contention level is seen at 96.60, the low of September 4. The additional downside filter to watch is 96.00, the low of September 19 and the psychological level.