GBP/JPY looks to approach 184.00 after the UK mixed employment data

• GBP/JPY strengthens after the release of moderate jobs data from the UK.
• Employment Change declined; the ILO Unemployment Rate and Claimant Count Change are up.
• BoJ Governor Kazuo Ueda’s hawkish statement could limit the depreciation of the Japanese Yen (JPY).

GBP/JPY trades higher around 183.70 during the Asian session on Tuesday. The pair is experiencing upward support after the release of employment data from the United Kingdom (UK).

The Office for National Statistics has reported that the ILO Unemployment Rate (3M) for the month of July stood at 4.3%, which is slightly up from the previous reading of 4.2% but in line with market expectations.

However, there were disappointing figures regarding Employment Change for July, which saw a decline of 207,000 jobs compared to a 66,000 decrease in the previous reading. This was worse than the anticipated drop of 185,000 jobs.

On the positive side, Claimant Count Change for August improved to 0.9K, a decrease from the previous 29K figure.

On Monday, Bank of England’s (BoE) policymaker Catherine Mann expressed that it is premature for the central bank to halt its interest rate adjustments. She further emphasized that it is preferable for the central bank to lean toward raising rates too aggressively rather than stopping prematurely. These hawkish remarks from BoE policymakers could potentially support the British Pound (GBP) and provide support for the GBP/JPY pair.

On the opposite side, Bank of Japan's Governor Kazuo Ueda made a hawkish statement in an interview with the Yomiuri Shimbun newspaper during the weekend. Governor Ueda indicated that the Japanese central bank is edging closer to the possibility of reversing its negative interest rate policy, which contributed support in underpinning the Japanese Yen (JPY).

The policymaker stated that there could be a change in the negative interest rates set by the Japanese central bank through the end of the year. The recent economic data from Japan supports the notion that the Bank of Japan is making progress toward achieving its 2% annual inflation target.

Market players will now observe the monthly UK Gross Domestic Product (MoM) and Manufacturing Production for July due on Wednesday, seeking trading opportunities in the GBP/JPY pair.