GBP/JPY backing into 145.50 after Monday's turnaround

• Sterling hitched higher against the Yen on Monday, but trade tensions are continuing to halt any smooth moves higher.
• The week ahead sees action from the BoE and Japan inflation figures, but the early week is a sedate affair.

The GBP/JPY is trading to the downside in the early Asia session, touching into the 145.50 region after climbing into 146.20 late on Monday.

Trade tensions between the US and most of its major trading partners continue to edge higher, routinely striking the legs out from underneath broader market sentiment, sending risk appetite lower.

Tuesday brings two speeches of note for the Sterling, with MPC Member Haskel speaking at 09:00 GMT and MPC Member McCafferty following right behind at 09:30 GMT, though traders will be looking ahead to a speech from the Bank of England's Governor Mark Carney, who will be addressing markets on Wednesday.

This week will be seeing another round of inflation figures for Japan, though the Tokyo CPI figures will not be dropping until Thursday, leaving the Yen to rise and fall as broader risk sentiment ebbs and flows. Tuesday's Japanese Corporate Service Price Index printed at the expected 1.0%, ticking up against the previous reading of 0.9%, but the low-tier figure has little immediate impact on market action.

GBP/JPY levels to watch

Notable resistance now rests at yesterday's high of 146.20, which marks in a lower high from last Friday's peak of 146.65, while the current week's primary support comes from Monday's low at 144.70, while the technical floor for the pair remains at the key bottom from June 19th near 144.40.