GBP/JPY Hangs in Balance Ahead of BoE and BoJ Decisions

The GBP/JPY cross has maintained its bid tone around the 208.25-208.30 region in the first half of the European session, but spot prices remain within striking distance of the year-to-date low touched last Tuesday.

Traders are waiting for this week's key central bank events before placing fresh directional bets. The Bank of England (BoE) is set to announce its decision on Wednesday, and the outcome of a two-day Bank of Japan (BoJ) meeting will be revealed on Friday.

The BoE is expected to leave interest rates unchanged, while traders have already priced in a 25 basis points (bps) BoJ rate hike. The focus will be on the future policy path, which will provide some meaningful impetus to the GBP/JPY.