The arguments you may seen cited in favour of short GBP/JPY in summary:
- bias favouring yen strength
- speculation on negative rates in the UK
With the risk is the on the popularity of the short GBP trade, a crowded position.
SG weigh in on the trade:
- improvement in risk sentiment overall and renewed collapse in volatility - gives a bullish yen bias
- Bank of England has a massive task ahead - retail sales bad, public sector finances are worse than expected ... talk around negative rates piles pressure on GBP
SG trade idea on the pair (this from Friday):
- Shorting GBP/JPY at 130.70
- 136 stop
- 120 target