James, 22, comes in for Watkin who is ruled out of the rest of the tournament because he requires surgery for the serious knee injury suffered in Paris.
“With Eddie, it’s about giving him that opportunity and confidence. I’ve been impressed,” said Gatland.
“He’s not just a big guy in terms of being able to carry the ball forward but he’s got some lovely skills and hands.
“We’ve been encouraging him to do that with some of his passing and offloading game.
“He gives us an opportunity to get over the gain line with his size.”
His partnership with Tompkins is Wales’ 24th different starting duo in 60 internationals since the start of 2020.
“What you’re trying to do is have combinations that are settled and build experience and partnerships over a period,” said Gatland.
“Unfortunately, with Owen being injured, it has been a forced change on us.
“For a number of years now, there’s been lots of different combinations. It’s trying to settle on a midfield.
“It’s important for the team going forward, with the nine and 10 inside and the back-three as well, having that solidity in midfield.”
Gatland outlined why he had made only a couple of changes.
“When you’re looking at picking a squad, if you make three or four changes, do those players feel like they’ve been made the scapegoat?” said Gatland.
“There’s a couple of forced changes, but there’s an opportunity for those guys to go out and do what we did well last week.
“Also an opportunity to fix some things to change the performance.”
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