GBP/JPY trades near 201.40, supported by a weaker Japanese Yen following disappointing household spending data. The pair bounced from lows around 200.70 but faces resistance at the highs of the past two sessions.

September’s Japanese household spending grew only 1.8% YoY, missing expectations and reinforcing concerns about the pace of Japan’s economic recovery. This data casts doubt on the Bank of Japan’s plans for a December rate hike.

Meanwhile, the British Pound is facing headwinds after the Bank of England (BoE) held rates steady on Thursday, with some officials advocating a potential cut. Governor Andrew Bailey’s dovish signals suggest the BoE may ease policy further, tempering Sterling gains.

Overall, GBP/JPY gains from Yen weakness but remains capped near 201.40, with a cautious outlook for further upside.