GBP/JPY revisits 200.00 as Japanese Yen underperforms across the board

• GBP/JPY climbs to near 200.00 amid weakness in the Japanese Yen.
• Japan's Akazawa is yet to schedule meeting on investment in the US with Washington.
• BoJ Himino expressed support for tightening the monetary policy further.

The GBP/JPY pair reclaims the psychological level of 200.00 during the Asian trading session on Tuesday. The pair strengthens as the Japanese Yen (JPY) underperforms across the board amid growing uncertainty about whether the Bank of Japan (BoJ) will hike interest rates again this year.

Growing domestic economic concerns are being a major drag on BoJ hawkish expectations. Last week, BoJ's Junko Nakagawa said that "there remain many uncertainties", despite the US and Japan reaching a trade agreement. He added that US tariff policies are weighing on Japan's "business and household sentiment".

Meanwhile, BoJ Deputy Governor Himino Ryozo argued in favor of raising interest rates earlier in the day, citing that inflation has remained well above central bank's target. "Appropriate to continue raising interest rates in accordance to improvements in economy prices," Himino said.

Going forward, the next major trigger for the Japanese Yen will be United States (US)-Japan meeting on trade discussions. However, Japan trade negotiator Ryosei Akazawa has yet not set a new schedule of meeting with Washington. Though he has clarified that there is "no gap in understanding with us on trade deal".

Last week, Japan's Akazawa cancelled his scheduled visit to Washington, which aimed to reveal financial details of Tokyo's $550 billion investment pledge in the US in exchange for reduced tariffs.

In the United Kingdom (UK), the Pound Sterling (GBP) trades firmly in a light economic calendar week. The next major trigger for the British currency will be market expectations over the Bank of England's monetary policy outcome in its meeting on September 18. Traders expect the BoE to hold interest rates steady as risks to inflation are bended on the upside.