AUD/JPY continued its positive momentum for a fifth consecutive day, trading around 98.85 in the early European session on Thursday. Optimism over progress in the US-China trade talks is supporting the China-linked Australian Dollar against the Japanese Yen. US President Donald Trump expressed confidence that several agreements could be reached with Chinese President Xi Jinping during their meeting in South Korea next week, potentially covering resumed soybean purchases, nuclear arms limits, and other trade issues.

From a technical perspective, AUD/JPY maintains a constructive outlook. The cross is comfortably supported above the 100-day Exponential Moving Average (EMA) on the daily chart, indicating that the longer-term bullish trend remains intact. Upward momentum is further confirmed by the 14-day Relative Strength Index (RSI), currently around 55, suggesting sustained buying interest in the near term.

Traders should watch the immediate resistance at 99.50, the high from October 14. A decisive break above this level could open the door for further gains toward the 100.00 psychological mark and potentially test the upper boundary of the Bollinger Band at 100.40.

On the downside, initial support is located at 97.84, the October 10 low. A drop below this level could expose 96.86, the October 2 low, while the 100-day EMA near 96.65 serves as a key technical pivot.

Overall, the combination of positive trade sentiment, technical support, and momentum indicators favors further upside for AUD/JPY, though traders should remain alert to any shifts in global risk sentiment or trade developments.