GBP/JPY Price Analysis: Remains on the defensive below the 184.00 mark following Japanese CPI

• GBP/JPY remains in the defensive near 183.85 after Tokyo Consumer Price Index (CPI) data. 
• The cross stands below the 50- and 100-hour EMAs with a downward slope.
• The first resistance level of GBP/JPY is seen at 184.15; 183.55 acts as an initial support level.

The GBP/JPY cross posts modest gains but remains below the 184.00 barriers during the early Asian session on Friday. The cross currently trades around 183.85, gaining 0.07% on the day following the release of Japanese inflation data.

The Statistics Bureau of Japan reported on Friday that the Tokyo Consumer Price Index (CPI) for August, fell to 2.9% YoY from 3.2% in the previous month, against 3.0% market predictions, while the Tokyo CPI ex Fresh Food and Energy remained stable at 4.0% YoY.

From the technical perspective, the GBP/JPY cross stands below the 50- and 100-hour Exponential Moving Averages (EMAs) with a downward slope on the one-hour chart, which means the path of the least resistance is to the downside. It’s worth noting that the Relative Strength Index (RSI) is located in bearish territory below 50 highlighting that further downside cannot be ruled out.

The first resistance level of GBP/JPY is seen at 184.15, representing the midline of the Bollinger Band. The additional upside filter to watch is 184.45 (50-hour EMA). The key barrier for the cross is located at 184.80, a confluence of the upper boundary of the Bollinger Band and the 100-hour EMA. Any meaningful follow-through buying will see the next stop at 185.50 (low of August 22) and 186.00 (a psychological round mark, high of August 23).

On the downside, a decisive break below 183.55 (the lower limit of Bollinger Band) will see a drop to 183.30 (the low of August 10). The key contention is seen at 183.00, portraying a high of August 9 and a psychological figure. Further south, the cross will see a downside stop at 182.35 (low of August 9).

GBP/JPY one-hour chart