During the Asian session on Tuesday, the GBP/JPY cross fluctuates in a narrow range and fails to capitalise on the previous day's modest intraday recovery of more than 150 pips from the 181.15 area, which was nearly at its lowest level in a week. Presently, spot prices are hovering just above the mid-182.00s as investors await UK wage growth data for additional impetus.

The three months leading up to August are projected to witness a 7.8% year-on-year increase in UK Average Earnings Excluding Bonuses, which is consistent with the previous month's reading. In contrast, the bonus-inclusive gauge is anticipated to decrease from 8.5% to 8.3% over the period under review. A report that surpasses initial projections could reignite concerns regarding inflationary forces and reinvigorate wagers on additional policy tightening by the Bank of England (BoE). Consequently, the British Pound (GBP) and the GBP/JPY cross could receive a substantial boost.

A milder print, on the other hand, will reaffirm market expectations that the BoE will maintain the status quo in November, albeit with a diminished likelihood of an immediate market reaction. The Bank of Japan (BoJ) maintains its stance that inflation is temporary and does not intend to reduce its substantial monetary stimulus. The dovish outlook and an overall optimistic risk sentiment could potentially further weaken the safe-haven Japanese Yen (JPY), indicating that the GBP/JPY cross continues to encounter minimal resistance to the upside.

However, favourable wagers may be resisted by traders due to concerns that Japanese authorities will intervene in the foreign exchange market to bolster the domestic currency. Additionally, traders may opt to exercise restraint until Wednesday's release of UK consumer inflation figures, which will significantly impact expectations regarding the BoE's subsequent policy action. However, the previously mentioned fundamental environment provides encouragement for the possibility of a significant upward trend in the GBP/JPY cross.

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