GBP/JPY slides to near 198.50, Japan's Akazawa cancels visit to Washington             

• GBP/JPY is down 0.2% to near 198.50 as the Japanese Yen trades firmly.
• BoJ's Nakagawa warns of economic risks stemming from US trade policy.
• BoE's Mann supported holding interest rates at their current levels for longer.

The GBP/JPY pair declines to near 198.50 during the European trading session on Thursday. The pair faces selling pressure as the Japanese Yen (JPY) outperforms a majority of its peers. The Japanese currency gains even as Bank of Japan board member Junko Nakagawa warned of domestic economic uncertainties due to tariffs imposed by the United States (US) on imports from Japan.

BoJ's Nakagawa said in a speech earlier in the day that "there remain many uncertainties", despite the US and Japan reaching a trade agreement. He added that US tariff policies are weighing on Japan's "business and household sentiment".

Signs of rising domestic economic uncertainty could be a drag on market expectations that the Bank of Japan (BoJ) will raise interest rates again in the remainder of the year.

Meanwhile, Japan's trade negotiator Ryosei Akazawa has cancelled his scheduled visit to Washington, which aimed to reveal financial details of Tokyo's $550 billion investment package in exchange for reduced tariffs, Reuters reported.

In the United Kingdom (UK), the Pound Sterling (GBP) faces selling pressure despite Bank of England (BoE) Monetary Policy Committee (MPC) member Catherine Mann stating that interest rates should remain at their current levels for a longer period. Mann supported for a tight monetary policy stance as price pressures appear to be persistent.