GBP/JPY sees upside above 165.00 ahead of BOJ minutes

• GBP/JPY is expected to display more gains after overstepping the critical hurdle of 165.00.
• The BOJ minutes are expected to remain extremely dovish.
• Pound bulls are performing well despite the downbeat Retail Sales data.

The GBP/JPY pair has displayed selling pressure in the early Tokyo session as investors are awaiting the release of the Bank of Japan (BOJ) minutes of July’s monetary policy. However, the upside remains favored as the minutes are expected to remain extremely dovish. Broadly, the asset has turned sideways in a 164.29-165.08 range after a sheer upside move from Monday’s low near 163.00.

It is worth noting that BOJ Governor Haruhiko Kuroda kept its interest rate policy unchanged last week. The BOJ is continued with its ultra-loose monetary policy in order to keep the inflation rate above the desired levels. However, its inability in elevating its wage rates is becoming a major hurdle and the inflation rate is above 2% seldom on the support of soaring price pressures.

What interesting would be in observing the BOJ minutes are the economic indicators, which will help in determining the economic situation of Japan.   

On the UK front, pound bulls are performing against yen despite the weaker Retail Sales data on Friday. The annual economic data landed at -5.8%, lower than the expectations of -5.3% and the prior release of -4.7%. The investing community should be aware of the fact that higher price pressures are driving Retail Sales for now. And, a release of lower Retail Sales indicates that the overall demand is extremely weak.