GBPJPY is trading below a descending trend line on the 4-hour time frame, and the pair is about to test the resistance again. Price is also finding a ceiling around the 50% Fib near the 154.00 major psychological mark.

A larger pullback could reach the 61.8% level closer to the 154.75 mark and the dynamic resistance at the moving averages. The 100 SMA is above the 200 SMA for now, but a bearish crossover seems to be looming. If resistance holds, GBPJPY could slide back to the swing low around 152.35 or lower.

Stochastic is already indicating overbought conditions or exhaustion among buyers. Turning lower would confirm that sellers are returning, especially with a bearish divergence seen.

RSI has a bit of room to climb before reaching the overbought zone, so a larger correction could follow. Once the oscillator moves south, price could follow suit.

The UK CPI is up for release today, and this would likely determine whether or not the trend line resistance might hold. Analysts are expecting to see an increase from 3.1% to 3.9% in the headline figure and a climb from 2.9% to 3.1% for the core version.

Stronger than expected results could increase the pressure on the BOE to tighten monetary policy in order to keep inflation in check. Weak data, on the other hand, could dash hopes of faster tapering or an interest rate hike.

Earlier on, the UK jobs report turned out mixed, with claimant count falling slower than expected while the average earnings index posted a stronger than expected increase in wages. The jobless rate fell from 4.5% to 4.3% versus the 4.4% forecast.

There are no major reports due from the Japanese economy today, so the yen might simply take cues from overall market sentiment. A return in risk aversion could benefit the safe-haven and lower-yielding Japanese currency.