• GBP/JPY rises steadily as market mood brightens, reducing flows to the safe-haven Yen. 
• Positive lending data in the UK shows credit remains ample. 
• BRC Shop Price Index shows disinflation in the UK but not enough to prompt BoE into action, say BBH analysts.
   

GBP/JPY trades over a third of a percentage point higher at just above 197 on Tuesday, drifting up after the steep correction of the previous day which saw the pair fall from a peak of 200 to a low of the day in the 193s. 

The sudden one-day decline was put down to the Japanese authorities intervening in Forex markets to prop up the depreciating Japanese Yen (JPY).

Yet Japan's top currency diplomat, Masato Kanda, refused to confirm this was the case on Tuesday morning, saying simply that the Ministry of Finance will release figures on currency intervention at the end of May.  

He also repeated his warnings about the risks of an excessive weakening of the Japanese Yen (JPY), adding “Excessive FX moves could impact on daily lives,” and, we “Need to take appropriate actions on FX.”