Jim was shocked by her hair not because he didnt like it but because he had a surprise for her
what is it my dear is it my hair i cut it for a gift for you, you do still love me right
Jim didn't have the watch because he sold it to by the combs for her hair
Nothing its just i got these combs for your hair but it seems you have cut it
i got you this lovely chain lets see your watch to see how it looks.
i sold my watch to get you the combs
How ironic that they both bought something for each other but cant use it due to them both giving that one precious item up
So while they both got something for each other its ironic because they didn't expect one another to sell there most valuable possessions. The tension comes in when he noticed her hair cut that's the conflict