• GBP/JPY edges lower on the release of Japanese CPI data on Tuesday.
• Pound Sterling received upward support on speculation regarding a delay in BoE’s rate cuts
• Japan’s CPI (YoY) grew by 2.2% against the previous growth of 2.6%.

GBP/JPY halts its winning streak that began on February 20, edging lower to near 190.80 during the Asian session on Tuesday. However, speculation arose regarding a potential delay in rate cuts following a testimony to the UK Treasury Committee by Bank of England (BoE) Governor Andrew Bailey and other policymakers last week. Bailey mentioned that while he wouldn't forecast the exact number of cuts, the bank was moving towards a path of lowering rates. This speculation has lifted the Pound Sterling (GBP) against the Japanese Yen (JPY).

Governor Bailey also emphasized that the Bank of England has transitioned from a focus on determining the tightness of policy and the necessary height of rates to considering how long the central bank needs to maintain this stance to achieve sustained inflation. Following the BoE's decision earlier this month to keep the interest rate steady at 5.25%, the markets have factored in expectations for four rate cuts by the end of the year.

However, the Japanese Yen (JPY) managed to draw in some buyers. Japanese consumer inflation data renewed expectations for a potential adjustment in the Bank of Japan's (BoJ) policy stance, leading investors to exercise caution. Additionally, recent verbal intervention by Japanese authorities may offer some support for the JPY.

In January, Japan’s National Consumer Price Index (CPI) grew by 2.2% year-over-year, slightly lower than the previous growth of 2.6%. Additionally, Core CPI (YoY) increased by 3.5%, down from the previous 3.7%. Traders are now eagerly awaiting Retail Trade data to gain further insights into the Japanese economic landscape.