The British Pound strengthened against the Japanese Yen in early Thursday trading after UK second-quarter GDP rose 0.6%, beating the 0.5% consensus estimate and signaling stronger-than-expected economic resilience. GBP/JPY climbed about 0.4% to around 192.50 as markets interpreted the data as reducing the likelihood of a near-term Bank of England rate cut and supporting the case for interest rates to stay higher for longer at 5.25%. Growth was driven by services and consumer spending, offsetting weakness in manufacturing and construction. The yen remained under pressure as the Bank of Japan kept its ultra-loose stance, including negative interest rates and yield curve control (a policy to guide government bond yields), leaving monetary policy divergence as a key driver for the pair. The near-term move favored Sterling, but the medium-term outlook still depends on upcoming UK inflation data, Bank of England communication, and any signs of policy normalization from the Bank of Japan.