GBP/JPY flat-lines around 182.00, UK PMIs eyed for some impetus ahead of BoJ on Friday

• GBP/JPY lacks a firm intraday direction and oscillates in a range during the Asian session.
• Reports that the BoJ will stick to its dovish stance weigh on the JPY and lend some support.
• Reduced bets for more aggressive BoE rate hikes cap any meaningful upside for the cross.

The GBP/JPY cross struggles to capitalize on Friday's strong intraday rally from levels just below the 180.00 psychological mark and kicks off the new week on a subdued note. Spot prices seesaw between tepid gains/minor losses through the Asian session and currently trade around the 182.00 mark, just below a nearly two-week high touched on Friday.

The Japanese Yen's (JPY) relative underperformance could be attributed to reports that the Bank of Japan (BoJ) was leaning toward maintaining the Yield Curve Control (YCC) strategy at its policy meeting later this week. This overshadows the fact that inflation in Japan remained above the central bank's 2% target for the 15th straight month in June and undermines the JPY, which, in turn, is seen acting as a tailwind for the GBP/JPY cross.

That said, concerns over slowing economic growth in China, the worsening US-China trade ties and geopolitical risks lend some support to the safe-haven JPY. Apart from this, diminishing odds for more aggressive policy tightening by the Bank of England (BoE), bolstered by last week's softer UK consumer inflation figures, hold back traders from placing aggressive bullish bets around the British Pound and cap the GBP/JPY cross.

Market participants also seem reluctant and prefer to wait on the sidelines ahead of the highly-anticipated two-day BoJ meeting starting on Thursday. The decision is scheduled to be announced on Friday, which should provide a fresh directional impetus to the GBP/JPY cross. In the meantime, the release of the flash UK PMI prints for the month of July will be looked upon to grab short-term trading opportunities on the first day of a new week.

Technical levels to watch