Ella 
GBP/JPY struggled to rebound on Wednesday, testing 189.50 before settling around 189.00 on Wednesday. GBP/JPY has cautiously recovered after falling to the 188.00 mark at the start of the week.
The Bank of Japan (BoJ) continues to mention the possibility of ending the negative interest rate regime. Earlier on Wednesday, Bank of Japan Governor Kazuo Ueda gave the nod to “adjusting negative interest rate policy” as the central bank prepares to put the burden of a final decision on spring wage talks between major corporate unions and management. The Bank of Japan has been publicly clear that whether the Bank of Japan will adopt a hawkish or dovish stance in the near term will depend entirely on wage growth after Japan’s spring negotiations conclude and economic data is released.
UK data released earlier on Wednesday was mixed but had little impact on markets. UK industrial production fell to -0.2% in January from 0.6% in December, missing expectations of 0.0%. UK manufacturing production also fell on a monthly basis, expected to be 0.0%, compared with the previous reading of 0.8%. UK gross domestic product (GDP) in January was also in line with expectations, at 0.2%, compared with -0.1% in the previous month.
Data for the pound (GBP) and yen are light for the rest of the trading session this week. Data on UK consumer inflation expectations for the next 12 months will be released on Friday. UK consumer inflation expectations are 3.3%.
