GBP/JPYsearching to regain 149.00 ahead of UK inflation data

• Sterling is shifting higher in Asia markets ahead of UK CPI data.
• Risk appetite, UK confidence is keeping the GBP elevated against the Yen.

The GBP/JPY is lifting in early Tokyo trading, testing into 148.90 after falling from a peak of 149.68 in Monday's action.

The Sterling took a bullish turn against the Yen on Monday and is still on the high side despite walking back some of early Monday's gains through the London-NY overlap. The pair is currently testing back upwards ahead of the UK's Consumer Price Index figures.

UK inflation in the pipe

The UK CPI numbers will be dropping at 09:30 GMT today, along with a pile of other indicators including the Retail Price Index, Producer Price Index, Housing Price Index, and the PPI Core Output, but all eyes will be on year-on-year CPI figures. The Bank of England (BoE) is expected to begin lifting interest rates soon, and although analysts are expecting the headline year-on-year CPI to come in at 2.8% (prev. 3.0%), the minor contraction is expected, and the Sterling could go on a tear if the figures come out at or better than expectations.

The Yen is facing a quiet week on the macro calendar, but that's probably for the best as Japan's government continues to roil over the government land sale scandal that has seen the Prime Minister of Japan, Shinzo Abe and his Finance Minister, Taro Aso entrenched within their positions inside the Japanese government, with opposition party members calling for Aso's resignation and the general public beginning to turn their backs on PM Abe.

GBP/JPY levels to consider

Monday's bullish action has managed to lift the pair away from support at the 200-day SMA, currently sitting near 148.00 with further support from yesterday's swing low of 148.40, while resistance rests at yesterday's high point of 149.68 and mid-February's swing high of 150.93.