• GBP/JPY attracts some sellers on Tuesday and is pressured by a combination of factors.
• Rebounding USD, delayed BoE rate hike bets, and UK political chaos undermine the GBP.
• Hawkish comments from BoJ’s Himino support the JPY and contribute to the modest fall.

The GBP/JPY cross edges lower during the Asian session on Tuesday and erodes a part of the previous day's strong gains to the 214.70 region, or a fresh monthly peak. Spot prices, however, lack follow-through selling and currently trade around the 214.35 area, down just over 0.10% for the day.

A combination of factors exert some downward pressure on the British Pound (GBP), which, in turn, fails to assists the GBP/JPY cross to build on the recent move up witnessed over the past week or so. Investors pushed back their expectation for the likely timing of the next interest rate hike by the Bank of England (BoE) after the UK Consumer Price Inflation (CPI) unexpectedly slowed to the 2.8% YoY rate in April, from 3.3% in the previous month. Apart from this, the UK political chaos, amid growing calls for Prime Minister Keir Starmer to step down, and the emergence of some US Dollar (USD) buying further undermine the GBP.

The Japanese Yen (JPY), on the other hand, draws some support from Bank of Japan (BoJ) Deputy Governor Himino Ryozo, saying that the central bank will continue to raise the policy rate based on economic activity, prices, and financial conditions. This further contributes to the mildly offered tone surrounding the GBP/JPY cross. The JPY bulls, however, seem hesitant on the back of concerns that Japan's economy will come under substantial strains due to continued disruptions to energy supplies from the Middle East. This, in turn, acts as a tailwind for the currency pair and warrants some caution before positioning for any further intraday fall.

There isn’t any relevant market-moving economic data due for release on Tuesday. Hence, it will be prudent to wait for strong follow-through selling before confirming that the GBP/JPY pair’s one-week-old move up has run out of steam and positioning for any meaningful decline. Even from a technical perspective, the recent goodish rebound from the 100-day Exponential Moving Average (EMA) pivotal support near the 211.00 mark favors bullish traders and backs the case for the emergence of dip-buying at lower levels.