GBP/JPY attracts some buyers above 193.00, focus shifts to Tokyo CPI data

• GBP/JPY gathers strength to around 193.10 in Thursday’s early European session. 
• The uncertainty about the BoJ's interest rate path undermines the JPY. 
• BoE’s Greene said she prefers a cautious approach to cutting interest rates. 

The GBP/JPY cross extends the rally to near 193.10 during the early European session on Thursday. The prospect that the Bank of Japan (BoJ) would delay raising interest rates further this year weighs on the Japanese Yen (JPY). Traders will keep an eye on Japan’s Tokyo Consumer Price Index (CPI) for September, which is due on Friday.  

The JPY loses momentum after BoJ Governor Kazuo Ueda signalled that the Japanese central bank is not in a rush to raise interest rates. According to the BoJ meeting minutes released on Thursday, policymakers were divided on how quickly the central bank should raise interest rates further, citing uncertainty on the timing of the next increase in borrowing costs. Several board members noted it would be "appropriate" for the central bank to "start gradually adjusting the significantly low policy interest rate."

On the other hand, the growing speculation that the Bank of England's (BoE) rate-cutting cycle is more likely to be slower than previously expected provides some support to the Pound Sterling (GBP). BoE Governor Andrew Bailey said he was “very encouraged” by the downward path of inflation, and he expected the path for interest rates will be downwards gradually. Meanwhile, BoE policymaker Megan Greene said on Wednesday that she prefers a “cautious approach” to cutting interest rates, warning of the risks from strong wage growth and economic activity.