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GBP/JPY drops to around 188.80 in the early European session on Wednesday, losing 0.31% for the day.
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The pair maintains a negative outlook below the 100-day EMA, supported by a bearish RSI.
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Initial support is seen at 186.55, while the key resistance lies at 190.00.
The GBP/JPY pair sees selling pressure around 188.80 in the early European session on Wednesday, following a weaker-than-expected UK Consumer Price Index (CPI) inflation report.
The UK CPI increased by 2.6% YoY in March, easing from February's 2.8% and coming in below the market consensus of 2.7%. This marks the lowest inflation since December 2024. Meanwhile, Core CPI, excluding food and energy, rose by 3.4% YoY in March, in line with expectations but slightly down from February's 3.5%.
From a technical perspective, the bearish outlook for GBP/JPY remains intact as the pair continues to trade below the key 100-day Exponential Moving Average (EMA). The downward momentum is further reinforced by the 14-day Relative Strength Index (RSI), which is below the neutral 50 mark at 44, suggesting a continued downside bias.
The initial support for the cross is seen at 186.55, the low from April 8. If losses extend, the next support level is at 185.65, near the lower boundary of the Bollinger Bands. A clear break below this level could open the way for a further decline toward 184.37, the low from September 13, 2024.
On the upside, immediate resistance lies at the psychological level of 190.00. A sustained break above this level could lead to a move toward 192.05, the 100-day EMA, with further resistance at 194.19, the high of April 3.
GBP/JPY daily chart
