GBP/JPY struggling to step up as Yen strengthens on China CPI miss

• GBP/JPY lifts in Asia, then sinks again.
• Softening Chinese CPI data keeping the Yen lofty.

GBP/JPY is off its Asia session high, trading into 151.50 following a disappointing Chinese CPI release.

GBP/JPY is being led by the nose by volatility in the Yen today, as the pair got a lift in early Tokyo trading after the Reserve Bank of Australia (RBA) held its expectations for 2018 inflation where they are, instead of the cut that many traders were bracing for, and the RBA's decision to stand pat for now gave a boost to markets. 

The sentiment was short-lived, as CPI data from China disappointed markets and sent traders in Tokyo looking for the Yen button, dragging GBP/JPY back down to 151.60 on reaction. The pair has stabilized for now, but bearish sentiment is resting heavy this Friday, and it won't take much to spook a fresh round of risk aversion out of markets.

GBP/JPY Technicals

Sterling has closed lower against the Yen four of the last five trading days, and a continuation of the bearish trend will face swing support priced in around 150.40, and a reversal will see resistance at the 152.50 minor psychological level. Long-term, GBP/JPY is still a bullish contender, with price still trading high above the 200-day SMA even as it pushes below the 34 EMA.

Today's pivot points: 
R2: 155.26
R1: 153.27
PP: 152.05
S1: 150.06
S2: 148.84