GBP/JPY: Depressed near four-week low, under 133.00, ahead of UK CPI

• GBP/JPY remains under pressure amid the UK’s coronavirus crisis.
• British human trials for the vaccine will begin on Thursday, medical supplies still a question.
• The UK recorded an 18,516 death toll in the week ending on Friday, cases cross 129,000 mark.
• UK CPI, virus updates and oil performance will be the key catalysts to watch.

Having slumped to the lowest in a month the previous day, GBP/JPY stays pressured near 132.45 during Wednesday’s Asian session. While downbeat UK employment figures and risk-aversion wave might have weighed on the pair off-late, traders will keep eyes on the economic calendar for the UK’s March month inflation data for fresh direction.

Although the oil price drop is considered as a major catalyst to propel the risk-off sentiment recently, the surprise increase in the UK’s death toll also favors the pair’s weakness. While considering details for the week ending on April 10, there have been more than 18,516 deaths due to the pandemic whereas total cases cross 129,000 mark as of Tuesday.

As a result, the Tory leaders are under immense pressure that might have pushed Health Secretary Matt Hancock to say that the government is "throwing everything" at developing a coronavirus vaccine. The BBC report also suggested the human trials on the same will start from Thursday.

Even so, the Boris Johnson-led government’s failure to tame the supply outage, mainly due to the political rift with the European Union (EU), was widely criticized.

Elsewhere, US President Donald Trump and his coronavirus (COVID-19) taskforce tried to placate traders by citing recoveries in major cities and readiness by 20 states to reopen. Also challenging the risk-off sentiment could be the US Senate’s passage of $484 billion package.

Amid all this, the US 10-year Treasury yields stay mostly unchanged near 0.58% but Japan’s NIKKEI registers more than 1.50% losses while declining to 18,948.

Moving on, the UK Consumer Price Index (CPI) figures for March, expected 1.5% YoY versus 1.7% prior, will be closely watched. It should also be noted that the BOE’s Bailey recently cited fears of re-opening the economies too soon.

Other than the UK data, moves of oil and the coronavirus updates will be important to follow.

Technical analysis

A sustained trading below 21-day SMA for the first time in a month keeps sellers directed to 130.00 psychological magnet. However, 132.00 could act as a trigger for the fresh downside.