• GBP/JPY gains to near 211.30 amid continued underperformance by the Japanese Yen.
• Ongoing China-Japan tensions offset strong Japan's Overall Household Spending data.
• Investors await UK employment data for fresh cues on the interest rate outlook.

The GBP/JPY pair moves higher to near 211.30 during the late Asian trading session on Friday. The pair gains as the Japanese Yen (JPY) underperforms its peers, with ongoing trade tensions between Japan and China offsetting Tokyo’s unexpectedly strong Overall Household Spending data.

This week, China banned the export of so-called dual-use goods, which address both military and civilian purposes, to Japan in response to threats of military action by Prime Minister (PM) Sanae Takaichi, if Beijing were to take action against Taiwan, an island democracy that Beijing considers its own territory, ABC News reported.

On Thursday, Bank of Japan (BoJ) Nagoya branch manager stated that some firms could be impacted by China's export curb on critical goods, but assured that there won’t be a big negative impact on the region's economy.

Earlier in the day, the Overall Household Spending data for November came in positive at 2.9% Year-on-year (YoY), while it was expected to decline at a moderate of 0.9% after contracting 3% in October.

Meanwhile, the Pound Sterling (GBP) trades broadly stable ahead of the United Kingdom (UK) labor market data for the three months ending in November, which is scheduled for Tuesday. Investors will pay close attention to the UK employment data to get fresh cues on the Bank of England’s (BoE) monetary policy outlook.