Ella 
The GBP/JPY cross traded in positive territory for the third consecutive day around 200.10 during early European trading on Tuesday. The cross fell a few pips on mixed UK employment data. Investors will shift their attention to the Bank of Japan (BOJ) monetary policy meeting on Friday.
The latest data from the Office for National Statistics on Tuesday showed that the ILO unemployment rate rose to 4.4% in the three months to April from 4.3% previously, below market expectations of 4.3%. Meanwhile, the number of people claiming unemployment benefits increased to 50,400 in May from 8,400 in April. The change in employment in the UK in the three months to April was -140,000, compared to -177,000 previously.
In addition, average earnings excluding bonuses in the UK rose 6.0% month-on-month in April, higher than the 6.0% expected in March. Average earnings including bonuses rose 5.9% over the same period, higher than the 5.7% expected. The British pound (GBP) attracted mild sellers in the immediate reaction to the mixed UK employment market data.
Nearly two-thirds of economists polled in a Reuters poll on Tuesday expect the Bank of Japan to start tapering its monthly bond purchases at its policy meeting on Friday. The central bank is widely expected to keep short-term interest rates unchanged at 0.0%-0.1%. Investors will be watching the BoJ’s statement closely. A dovish tone from the BoJ could put some selling pressure on the yen (JPY) and provide a “tailwind” for the GBP/JPY cross.
