GBP/JPY corrects to near 204.00 as Yen outperforms, UK CPI data awaited

• GBP/JPY retraces to near 204.00 as the Japanese Yen outperforms its peers.
• BoJ Governor Ueda is scheduled to meet key government ministers to discuss monetary policy and economic outlook.
• The UK's inflation is expected to have decelerated in October.

The GBP/JPY pair retraces to near 204.00 in the Asian trading session on Wednesday after revisiting an almost six-week high around 204.80 the previous day. The pair faces selling pressure as the Japanese Yen (JPY) attracts bids after underperforming its peers in the past few weeks.

The outlook of the Japanese Yen remains uncertain as traders pare bids supporting more interest rate hikes by the Bank of Japan (BoJ) in the near term, assuming that the central bank will align monetary policy with fiscal objectives.

Japan's new leader Sanae Takaichi is expected to follow principals of former Prime Minister Shinzo Abe's principals, which favored higher fiscal spending and lower taxes.

In Wednesday's session, investors will focus on the BoJ Governor Kazuo Ueda's meeting with key government ministers on Wednesday, including Finance Minister (FM) Satsuki Katayama.

Meanwhile, the Pound Sterling (GBP) trades cautiously ahead of the United Kingdom (UK) Consumer Price Index (CPI) data for October, which will be published at 07:00 GMT. Investors will pay close attention to the UK inflation data as it is expected to influence market expectations for the Bank of England's (BoE) monetary policy outlook.

The Office for National Statistics (ONS) is expected to show that the headline inflation grew at a moderate pace of 3.6% on an annualized basis, slower than September's reading of 3.8%. In the same period, the core CPI - which excludes volatile items such as food, energy, alcohol, and tobacco - decelerated to 3.4% from the prior reading of 3.5%.