JPY has been the dominant currency in the pair since the price bounced off 149.00 with a daily close. At present, the pair is trading at near 135.50.

The Bank of England is going to announce its monetary policy decision this week after the Bank of Japan. Meanwhile, the chaos and uncertainty triggered by BREXIT is the matter of concerns for speculators trading GBP/JPY. Indeed, the UK economy has been eventually affected by volatility. The rising risks of a no-deal BREXIT are increasing in the UK, so the BoE is planning to tighten monetary policy in the next 2-3 years. At the June meeting, this statement on monetary policy is expected from the BOE without any hawkish hints. However, the BOE is the only central bank where an increase of the key interest rate does not matter much for the domestic economy.

This week UK CPI report is going to be published which is expected to decrease to 2.0% from the previous value of 2.1% and PPI Input is also expected to drop to 0.2% from the previous value of 1.1%. Moreover, CBI Industrial Order Expectations report is expected to reveal a fall of the indicator to -11 from the previous figure of -10. Tomorrow, UK Retail Sales report is also going to be published which is expected to contract to -0.5% from the previous value of 0.0%.