GBP/JPY is in its fourth day of consecutive gains going from 136.40 to a high of 141.50. The pair reacted to the bullish remarks made by May in her speech to pursue a hard Brexit. Usually when traders and investors buy the Sterling, they sell the Yen causing it to depreciate against all of its peers.
In the case of GBP/JPY, market participants favored the Sterling and what we currently observe is the continuation of the move that started a few days ago. The short-term outlook looks bullish only if bulls manage to push through the 200SMA that is occurring in current market price. A few attempts have proved successful in the near-past so bulls still have the advantage.
On the other hand, the inauguration of Trump might turn out to be a bearish signal for the US dollar, as we already saw a 10% rise in US equities and it's unlikely that the move can hold on much longer. In light of this, what could be happening is buy the election, sell the inauguration, in which case, the Yen might again start to appreciate.
In other news, in less than a day we will witness how Trump becomes President! Markets are anticipating the historical event and high volatility can be expected.