GBP/JPY Price Forecast: Bearish outlook remains intact below 189.00

• GBP/JPY softens to near 188.80 in Wednesday's early European session, down 0.31% on the day. 
• The cross keeps the negative outlook below the 100-day EMA with a bearish RSI indicator. 
• The initial support emerges at 186.55; the crucial upside barrier is located at 190.00. 

The GBP/JPY cross attracts some sellers to around 188.80 during the early European session on Wednesday. The Pound Sterling (GBP) weakens against the Japanese Yen (JPY) after the UK Consumer Price Index (CPI) inflation report.

The UK Consumer Price Index (CPI) rose 2.6% YoY to March, an easing from the 2.8% increase in February, according to the Office for National Statistics on Wednesday. It was the weakest inflation since December 2024 and below the market consensus of 2.7%. Meanwhile, the Core CPI, which excludes the volatile prices of food and energy, rose 3.4% YoY in March versus 3.5% prior, in line with the market consensus of 3.4%. 

According to the daily chart, the bearish outlook of GBP/JPY remains in play as the cross remains capped below the key 100-day Exponential Moving Average (EMA). Furthermore, the downward momentum is supported by the 14-day Relative Strength Index (RSI), which is located below the midline near 44, suggesting that the path of least resistance is to the downside. 

The first downside target for the cross emerges at 186.55, the low of April 8. Extended losses could see a drop to 185.65, the lower limit of the Bollinger Band. A decisive break below the mentioned level could pave the way to 184.37, the low of September 13, 2024. 

On the bright side, the immediate resistance level for the cross is located at the 190.00 psychological mark. Sustained trading above this level could attract some buyers to 192.05, the 100-day EMA. Further north, the next hurdle is seen at 194.19, the high of April 3.  

GBP/JPY daily chart