- GBP/JPY attracts some sellers to around 190.25 in Thursday’s early European session, down 0.35% on the day.
- The cross keeps the negative outlook below the 100-period EMA with a bearish RSI indicator.
- The initial support emerges at 190.00; first upside barrier is located at 192.40.
The GBP/JPY cross trades in a negative territory around 190.25 during the early European trading hours on Thursday. The growing speculation that the Bank of Japan (BoJ) would keep raising interest rates provides some support to the Japanese Yen (JPY) and creates a headwind for the cross.
Technically, the bearish outlook of GBP/JPY remains in play as the major pair remains capped below the key 100-period Exponential Moving Average (EMA) on the 4-hour chart. Furthermore, the downward momentum is supported by the Relative Strength Index (RSI), which is located below the midline around 37.00, suggesting that the path of least resistance is to the downside.
The first downside target for the cross emerges at the 190.00 psychological mark. Extended losses could see a drop to the lower limit of the Bollinger Band at 189.70. A decisive break below the mentioned level could pave the way to 189.34, the low of January 17.
On the bright side, the 100-period EMA at 192.40 acts as an immediate resistance level for the cross. Sustained trading above this level could attract some buyers to 193.54, the upper boundary of the Bollinger Band. Further north, the next hurdle is seen at 194.71, the high of January 27.
GBP/JPY 4-hour chart
