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GBP/JPY is expected to rise over 165.00 prior of BOJ minutes
After surpassing the crucial level of 165.00, GBP/JPY is anticipated to exhibit more gains. The minutes of the BOJ are anticipated to remain quite dovish. Despite the dismal Retail Sales statistics, pound bulls are performing nicely.
In the early Tokyo session, the GBP/JPY pair has exhibited selling pressure as investors anticipate the publication of the Bank of Japan (BOJ) minutes from July's monetary policy meeting. Nevertheless, the upside remains preferred, since the minutes are anticipated to be quite dovish. After a sharp upward movement from Monday's low at 163.00, the asset is now trading in a 164.29-165.08 range.
Notable is the fact that BOJ Governor Haruhiko Kuroda maintained the same interest rate policy last week. The Bank of Japan (BOJ) maintains its ultra-lax monetary policy to maintain an inflation rate above the target level. However, its reluctance to increase pay rates is becoming a severe obstacle, and the inflation rate seldom exceeds 2 percent despite rising price pressures.
Observing the BOJ minutes will be intriguing due to the economic statistics, which would assist determine Japan's economic status.
On the British front, pound bulls are performing well versus the yen despite Friday's lower Retail Sales data. The annual GDP statistics came in at -5.8 percent, which was below the anticipated -5.3 percent and the previous announcement of -4.7 percent. Investors should be aware that rising pricing pressures are now pushing Retail Sales. And a report of declining Retail Sales implies that demand is frail overall.
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