GBP/JPY Price Analysis: Loses traction near 183.20 within the descending triangle, Bear Cross eyed

• GBP/JPY cross trades within the descending triangle pattern since August.
• The 50-hour EMA is on the verge of crossing below the 100-hour EMA.
• The first resistance level of GBP/JPY is seen at 184.40; 183.10 acts as an initial support level.

The GBP/JPY cross trades within the descending triangle pattern since August. The cross currently trades around 183.22, losing 0.56% on the day. The recent interview of the Japanese policymaker triggers the Japanese Yen (JPY) higher against the British Pound (GBP) in the early Asian session on Monday. Bank of Japan (BoJ) Governor Kazuo Ueda stated in an interview on Monday that the central bank will now be on "a quiet exit," as the BOJ seeks to avoid any major impact on the market.

From the technical perspective, the GBP/JPY cross stands below the 50- and 100-hour Exponential Moving Averages (EMAs). It’s worth noting that the 50-hour EMA is on the verge of crossing below the 100-hour EMA. If a decisive crossover occurs on the four-hour chart, it would validate a Bear Cross, highlighting the path of least resistance for the cross is to the downside.

The first resistance level of GBP/JPY is seen at 184.40 (a confluence of the 50- and 100-hour EMA). The additional upside filter to watch is 185.35 (the upper boundary of the descending triangle pattern). Any meaningful follow-through buying will see the next stop at 186.00 (a psychological round mark, a high of August 23).

On the flip side, a decisive break below the lower limit of the descending triangle pattern of 183.10 will see a drop to 182.55 (a high of July 21) en route to 182.35 (a low of August 9) and a psychological round mark at 182.00.

Furthermore, the Relative Strength Index (RSI) is located in bearish territory below 50, highlighting that further downside cannot be ruled out.

GBP/JPY four-hour chart