GBP/JPY eases to 202.30 as Japan's PM announces her cabinet 

• The Pound eases below 200.50 following the announcement of Japan's new cabinet.
• The new Japanese finance minister, Satsuki Katayama, has previously called for a stronger Yen.
• Pound's rallies remain subdued, with all eyes on the UK CPI release, due on Wednesday.

The British Pound keeps a mild positive tone against the Yen on Tuesday, but has retreated from session highs at 202.80 to levels around 202.30 at the time of writing, which leaves the pair wavering without a clear direction, within the last week's trading range.

The Yen is trimming some losses as the recently elected Prime Minister, Sanae Takaichi, announced the members of her cabinet earlier on Tuesday.

Japan's finance minister advocates for a stronger Yen

The appointment of Satsuki Katayama as finance minister has provided some support to the Japanese Yen, as her profile highlights some contrast with the market expectations of a low JPY, loose monetary policy that Takaichi was expecting to pursue.

Katayama, a former finance ministry bureaucrat, has criticised Yen weakness previously, affirming that Japanese economic fundamentals suggest that the JPY's real value should be between 120 and 130 USD. The Yen is right now trading above 151.00.

On the other hand, the Pound is lacking upside momentum, as investors await the release of the key UK CPI figures, due on Wednesday, for further clues about the Bank of England's monetary policy path. Markets are bracing for a hotter CPI inflation reading, which might hit the 4% yearly growth, forcing the BoE to adopt a more cautious view on monetary easing.