GBP/JPY Price Analysis: Teeters on a tightrope as RSI divergence warrants downside risks

• GBP/JPY wavers around 184.00, with intervention from Japanese authorities limiting a further upward push.
• Negative divergence in the Relative Strength Index (RSI) indicates potential downward movement for the GBP/JPY.
• Key support and resistance levels lie in wait, with an immediate downside target at 183.00 and an upside potential at 185.00.

GBP/JPY begins the Asian session on a lower note. The GBP/JPY finished Wednesday's session extending its gains to four straight days but failed to decisively break stubborn resistance at 184.00, near the year-to-date (YTD) high. At the time of writing, the GBP/JPY is trading at 183.70, losses a minuscule 0.01%.

GBP/JPY Price Analysis: Technical outlook

The GBP/JPY uptrend remains capped at around the 184.00 figure. Japanese authorities' language intervention in the Forex markets keeps the Japanese Yen (JPY) from weakening, putting a lid on GBP/JPY buyers' attempt to crack 184.00. As the GBP/JPY reaches a higher-high, the Relative Strength Index (RSI) prints lower peaks, suggesting a negative divergence formed, suggesting further GBP/JPY downside is expected.

Nevertheless, the GBP/JPY must drop below 183.00, so it can expose the Tenkan-Sen line at 182.84. A breach of the latter will expose the June 30 daily low at 182.19, followed by the 182.00 figure. Once broken, the GBP/JPY next support would be the Senkou Span A, at 180.59.

Conversely, a rally above the year-to-date (YTD) high of 184.01 would expose the 185.00 figure, followed by the December 2015 daily high at 186.34.

GBP/JPY Price Action – Daily chart