GBP/JPY goes bullish ahead of Europe, hits 150.77

• GBP/JPY catches a ride on thin trading.
• UK CPI data on Tuesday at 09:30 GMT.

GBP/JPY found some buyers in Asia markets, climbing 76 pips to reach 150.77 on low volumes. The pair is currently trading slightly back, into 150.60 as of writing.

The Sterling has been pushed onto its back foot against the Yen recently, as risk aversion sent traders seeking safe havens last week. Inflation fears stoked by recent upbeat economic figures from key countries around the world has seen equities tumble and bond yields spike higher as central banks prepare to begin lifting interest rates, threatening global markets' decade-long run of easy money access from central bank easing measures. 

The Bank of England (BoE) is no exception, with Deputy Governor for Monetary Policy Ben Broadbent hitting the wires to hint that markets should prepare for a series of rate increases to come from the UK's central bank sooner rather than later, citing upbeat data and positive growth figures for the Sterling's economy. The UK will be dropping CPI data for January at 09:30 GMT on Tuesday, with market analysts anticipating a 0.4% decline over the previous month, and 2.9% over the same period the previous year. An upside beat for CPI could see the Sterling lifting back into bullish mode, assuming markets are able to keep the inflation-fearing jitters in check.

GBP/JPY Technicals

The Sterling has been gaining incrementally on the Yen since late 2016, but declined heavily recently, shedding over 500 pips last week. Intraday trading will face swing resistance at 150.85 and 151.40, while the recent swing looks set to price in support from the 149.00 psychological handle. Daily candles stil have bullish potential with price trading above the 200-day SMA, and looking prepared to continue upwards after turning away from support at 150.00.