GBP/JPY Price Analysis: Falls toward 189.00 after breaking below nine-day EMA

• GBP/JPY could navigate the support region around the five-month low at 187.05.
• The 14-day RSI remains below the 50 level, indicating strengthening bearish momentum.
• The immediate resistance appears at the nine-day EMA of 190.69.

GBP/JPY extends its decline for the second consecutive day, trading around 189.30 during Asian hours on Thursday. A daily chart analysis suggests that the currency cross remains within a descending channel pattern, signaling a continued bearish bias.

The 14-day Relative Strength Index (RSI), a key momentum indicator, remains below the 50 level, reinforcing the bearish momentum. Moreover, the GBP/JPY cross continues to trade below the nine- and 14-day Exponential Moving Averages (EMAs), indicating weaker short-term price momentum.

Regarding its support, the GBP/JPY cross could navigate the region around a five-month low at 187.05, which was recorded on February 7, followed by the lower boundary of the descending channel around the 185.50 level.

On the upside, the GBP/JPY cross could test immediate resistance at the nine-day EMA of 190.69, followed by the 14-day EMA at 190.91. A break above these levels could weaken the bearish bias and support the currency cross to test the descending channel’s upper boundary at the 192.00 level.

A break above the channel would weaken the bearish bias and support the GBP/JPY cross to explore the area around the two-month high of 198.26.

GBP/JPY: Daily Chart