GBP/JPY Outlook (16 September 2020)

Overall, GBP/JPY is trending downwards.

The Bank of Japan (BoJ) will be announcing their interest rate decision tomorrow at a tentative timing. It is expected that the central bank will be holding interest rate unchanged at -0.10% while no new monetary policy changes will be carried out. A press conference will also be held at a tentative timing after the announcement.

The UK employment data released yesterday indicated an increase in the number of claimants for unemployment benefits in August and a slight increase in the unemployment rate in August.

• Claimant Count Change (Actual: 73.7K, Forecast: 99.5K, Previous: 69.9K revised from 94.4K)
  
• Average Earnings Index 3m/y (Actual: -1.0%, Forecast: -1.3%, Previous: -1.2K)
  
• Unemployment Rate (Actual: 4.1%, Forecast: 4.1%, Previous: 3.9%)
  

The UK CPI y/y data will be released later at 1400 (SGT).

• CPI y/y (Forecast: 0.1%, Previous: 1.0%)
  
• Core CPI y/y (Forecast: 0.7%, Previous: 1.8%)
  

GBP/JPY’s next support zone is at 133.780 and the next resistance zone is at 136.200.
If the released CPI data is overall poor, look for selling opportunities of GBP/JPY.