GBP/JPY Consolidates Around 182.00, with UK PMIs Viewed As a Potential Catalyst Ahead of BoJ on Friday
During the Asian session, GBP/JPY lacks intraday direction and oscillates in a narrow range. The JPY is supported by rumours that the BoJ will maintain its dovish posture, which weigh on the currency. Reduced bets on more aggressive BoE rate increases limit the cross's upside potential.

The GBP/JPY cross is unable to capitalise on Friday's powerful intraday rally from levels just below the psychological 180.00 level and begins the new week on a subdued note. Spot prices fluctuate between tepid gains and minor losses throughout the Asian session and are presently trading around 182.00, just below Friday's high by nearly two weeks.
The relative underperformance of the Japanese Yen (JPY) could be attributed to reports that the Bank of Japan (BoJ) was inclined to maintain the Yield Curve Control (YCC) strategy at its policy meeting later this week. This overshadows the fact that Japan's inflation remained above the central bank's 2% objective for the fifteenth consecutive month in June and weakens the JPY, which is viewed as a tailwind for the GBP/JPY cross.
However, concerns regarding China's slowing economic development, deteriorating US-China trade relations, and geopolitical risks provide some support for the safe-haven JPY. Aside from this, decreasing odds for more aggressive policy tightening by the Bank of England (BoE), reinforced by last week's softer UK consumer inflation figures, discourage traders from placing aggressive bullish wagers on the British Pound and limit the GBP/JPY cross.
Prior to the highly-anticipated two-day BoJ meeting beginning on Thursday, market participants appear reluctant and prefer to wait on the periphery. The decision is expected to be announced on Friday, which should provide the GBP/JPY cross with fresh directionality. In the interim, the publication of the flash UK PMI prints for the month of July will be anticipated to seize short-term trading opportunities on Monday.
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