GBP/JPY Price Forecast: Next upside barrier emerges near 193.50

• GBP/JPY gains ground to around 191.20 in Wednesday's early European session. 
• The cross keeps the negative outlook below the 100-period EMA with the bearish RSI indicator. 
• The initial support level is seen at 187.70; the key upside barrier to watch is 193.50.

The GBP/JPY cross trades in positive territory near 191.20 during the early European session on Wednesday. The Japanese Yen (JPY) weakens amid the concern that US President Donald Trump's no-exemption taxes on commodity imports could jeopardize Japan's economic recovery.

Early Wednesday, Japan's Finance Minister, Katsunobu Kato, noted that he will assess the impact of US tariffs on the Japanese economy and respond appropriately. 

Technically, the bearish outlook of GBP/JPY remains in place as the cross remains capped below the key 100-day Exponential Moving Average (EMA) on the daily chart. Furthermore, the downward momentum is supported by the Relative Strength Index (RSI), which is located below the midline near 47.45, suggesting that the path of least resistance is to the downside. 

The lower limit of the Bollinger Band at 187.70 acts as an initial support level for the cross. A decisive break below the mentioned level could expose the 187.05-187.00 region, representing the low of February 7 and the psychological mark. Further south, the next contention level is seen at 184.37, the low of September 13, 2024. 

On the bright side, the key resistance level for GBP/JPY emerges near 193.50, the 100-day EMA. Sustained trading above this level could pave the way to 195.15, the upper boundary of the Bollinger Band. The additional upside filter to watch is 197.41, the high of January 6. 

GBP/JPY daily chart