GBP/JPY melts down almost 300 pips on missed UK inflation and geopolitical concerns, en route to 2018 low

• GBP/JPY is selling-off on a combination of lower inflation in the UK and geopolitical worries about China and North Korea.
• GBP/JPY price action is one-sided as it is tanking almost 300 pips on Wednesday and en route to 2018 low. 

The Guppy opened close to the 149.00 handle in Asia and traded sharply to the downside in Europe and as the New York forex session is about to start. GBP/JPY is currently trading at around 146.06 down 1.92% on Wednesday’s trading. 

As the yen is considered a safe-haven, JPY is gaining on risk-averse trading. Indeed, markets are in the risk-off mode as the US President Trump said that there was a “substantial chance” that the meeting with the North Korean Leader, Kim Jong Un thas was planned for June 12 in Singapore might not take place. "Whether or not it happens, you'll be knowing pretty soon," said Trump.

Equally adding strong weight to the risk-off mood are the recent Trump’s comments saying that he was not satisfied with the progress made on the US-China trade war. 

Earlier in Europe, adding extra-pressure to GBP/JPY was the worse-than-expected inflation data in the UK. Indeed, the Core Consumer Price Index year-on-year in April missed expectations and decelerated to 2.1% versus 2.2% expected by analysts while the Producer Price Index Input year-on-year in April also missed expectations at 5.3% versus 5.8% forecast.

GBP/JPY 4-hour chart 

The GBP/JPY currency cross is spiking down trading below its 50, 100 and 200-period simple moving averages (SMA) suggesting a strong downward bias. To to the downside, investors should likely meet support at the 144.98 swing low. On the other hand, resistances are priced in at the 147.05 swing low and 148.00 handle.