My question is though can the RN counter balance against the Japanese without compromising their ability to contain the High Seas Fleet?
Yes, but they may well not do it for various political reason. The RN can lose boat loads of ships and the UK will be safe. I sank boat loads of RN ships in my TL, and never came close to being able to seriously threaten the home islands of the British Empire. RN is really, really big in capital ship ability, even bigger in ability to build ships fast, and even bigger in HUGE numbers of cruisers.
Now it is almost ASB for Japan to join the central powers, but I will give it a run and assume some "secret" deal with Germany so Japan enters within a few months of the start of the war and Germany knows Japan will be at worst neutral. OK, likely the German fleet stays in the east. Tsingtao becomes a base for arming AMC which will be very annoying but far from decisive. I can't overstate how poorly planned the Germans AMC operation will be at the beginning but they will arm some ships. Interesting, German shipping was disporportionally involved in the China trade. The UK will move enough ships to Hong Kong or Singapore to protect the Indian Ocean. The UK is very short of troops , so they will not be able to take Tsingtao, much less harm the Japanese home islands. Seaborne trade will collapse in China, and the Chinese will suffer. Once Japan enters, it becomes tough for the UK who might well lose Hong Kong, depending of force allocation decisions. Then it will stalemate at sea and land. Japan focuses on removing British influence in China, RN keeps Japan in Pacific and away from Australia.
Lots of butterflies, but hard to call besides few points.
- ANZAC earns it glory in Pacific.
- Profound effect on Aussie and Kiwi national perspective.
- Probably slows UK in Africa a bit, especially East Africa.
- Most important effect to look at is Russia. Since WW1 was lost by CP on land and in the east, it is very important how Russia reacts. Due they basically do OTL and ignore Japan in the east or do they send additional forces eastward?