Anna 
On Tuesday, the GBP/JPY cross displayed a notable recovery from levels below 188.00, breaking a five-day losing streak that led to nearly a one-month low the previous day. Despite the rebound, spot prices retraced slightly from the daily peak and are currently trading around the 188.75 region.
The recovery in the GBP/JPY cross was prompted by a mixed UK monthly jobs report released by the Office for National Statistics (ONS). While the number of people claiming unemployment-related benefits increased by 16.8K in February, beating the expected 20.3K, the uptick in the unemployment rate to 3.9% during the three months to January and a modest slowdown in UK wage growth contributed to some selling around the British Pound (GBP) and the GBP/JPY cross.
Market participants, however, appear to believe that the Bank of England (BoE) will maintain higher interest rates for a longer duration, even in the face of a sluggish economy. This sentiment could deter aggressive bets against the GBP. Additionally, the lack of hints from Bank of Japan (BoJ) Governor Kazuo Ueda regarding exiting negative rates or altering the Yield Curve Control (YCC) policy, coupled with an overall positive risk tone, is putting downward pressure on the Japanese Yen (JPY). This factor is expected to contribute to limiting the downside for the GBP/JPY cross.
