GBPJPY to close above psychologically important 200 level?

GBPJPY decreasing ~0.08% percent since the previous trading session’s close. Over the past 4 weeks GBPJPY has lost around ~1.46%. Over the last 12 months, its price rose by ~10.26%.
 

Looking ahead, according to Bloomberg’s FX model, the GBPJPY is expected to trade (with 75.9% probability) within 197.728 – 203.010 range during the next 7 days.

GBPJPY may be experiencing higher levels of volatility tomorrow due to important macroeconomic readings coming out of both Japan (JP) and Great Britain (GB).

Key reading scheduled for tomorrow:

• JP: BoJ monetary policy meeting minutes and balance of trade (-1300B yen – expected; -462.5B yen – previous)
   
• GB: Inflation rate (2.0% YoY – expected; 2.3% YoY – previous)

A higher-than-expected inflation rate in the UK may translate into GBPJPY moving higher.

From the technical perspective

GBPJPY is trading above the key simple moving averages (SMAs), underscoring a strong bullish momentum.

To the downside the 21-period SMA along with psychologically important 200 level are set to provide an immediate support.

The relative strength index (RSI) is in the neutral zone (<30 – oversold; >70 – overbought), reflecting the market’s state of uncertainty ahead of important data release tomorrow.