• GBP/JPY extends decline near 202.20 in Tuesday’s early European session, down 0.45% on the day. 
• The cross keeps the negative stance on the 4-hour chart, with the bearish RSI indicator. 
• The key support level emerges at the 202.00 psychological mark; the upside barrier is seen at 203.16. 

The GBP/JPY cross remains under some selling pressure around 202.20 on Tuesday during the early European session. The risk-averse environment and growing speculation that the Bank of Japan (BoJ) will hike next week support the Japanese Yen (JPY) and create a headwind for GBP/JPY.

Technically, GBP/JPY maintains the bearish outlook unchanged on the 4-hour chart as it holds above the key 100-period Exponential Moving Average (EMA). Additionally, the Relative Strength Index (RSI) stands in bearish territory below the 50-midline, suggesting extended losses cannot be ruled out. 

The key support level will emerge at the 202.00 psychological mark. A decisive break below this level will pave the way to 201.14, a low of June 24. Further south, the next contention level is located at 200.48, a low of June 21. 

On the upside, the immediate resistance level for the cross is seen at 203.16, a high of July 22. The crucial upside barrier to watch is the 204.00-204.10 region, representing the conference of the psychological level, 100-period EMA, and the upper boundary of the Bollinger Band. 
 

GBP/JPY 4-hour chart

(Click on image to enlarge)

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