GBP/JPY Suffered huge drop, the bias remains bearish

GBP/JPY experienced today the coincidence of weak Sterling and strong Japanese Yen, which led to around 300 pips drop and a fresh new 2018 low. The UK inflation data released today showed very disappointing numbers while the US-China relations continuation strengthened brought risk aversion and strengthened the Yen. 

After having pinned the remarkable low at 145.90 the pair bounced to currently trade at 146.90.  As seen on the four hour time frame the price is developing below its bearish moving averages. RSI has lost direction and is staying flat around 30. Stochastic bounced from extreme oversold area and is showing good upward strength although remains at its 20 level. 

In case the pair close below the 147.00 handle we might witness an aggressive short-term bearish scenario. This would bring on the table re-testing of 146.00 level with a potential downward slope toward the next bearish target at 145.00. Looking to the upside the level that should be taken into consideration is 147.60 and above it usable higher resistance comes at 148.20.