By Areena FxGBP/JPY saw a notable rise today following dovish comments from the Bank of Japan (BoJ). However, gains were tempered after the release of mixed UK jobs data. On a five-day losing streak, the cross managed to bounce back from levels below 188.00, reaching around 188.75.
The UK Office for National Statistics (ONS) reported an increase in unemployment-related benefits claims to 16.8K in February, compared to the previous month’s revised figure of 3.1K and the expected 20.3K. Despite this positive headline number, the uptick in the unemployment rate to 3.9% and a slight slowdown in wage growth led to some selling pressure on the British Pound (GBP) and, consequently, the GBP/JPY cross.
Investors, however, remain confident that the Bank of England (BoE) will maintain higher interest rates despite economic challenges. This belief may discourage aggressive selling of the GBP. On the other hand, Bank of Japan (BoJ) Governor Kazuo Ueda refrained from providing indications of exiting negative rates or altering the Yield Curve Control (YCC) policy. This, coupled with a generally positive risk sentiment, has weighed on the Japanese Yen (JPY), limiting the downside for the GBP/JPY cross.