GBP/JPY Reverses Losses as BoJ's Hawkish Outlook Fails to Boost Yen

The British Pound has seen an increase against the Japanese Yen on Thursday, reversing all losses from the previous day. The move is largely driven by weakness in the Japanese Yen rather than any significant development for the British Pound.

The Bank of Japan's potential interest rate hike next month does not seem to be affecting the currency, which continues to struggle under pressure from higher oil prices linked to the US-Iran standoff and concerns over government spending and high public debt.

Meanwhile, UK inflation and labour-market figures released this week suggest that the Bank of England will maintain its current policy stance and keep interest rates unchanged at 3.75%, well above the Bank of Japan's 1% policy rate.