GBP/JPY surrenders modest recovery gains post-UK PMI, back around 200-DMA

   •  UK services PMI falls short of consensus estimates and prompts some GBP weakness.
   •  Reviving safe-haven demand further collaborates towards capping gains.

The GBP/JPY cross struggled to build on its early recovery attempt and has now retreated back to the lower end of its daily trading range post-UK data. 

The British Pound lost some ground after the UK services PMI failed to meet expectations and came in at 52.8 for April, still better-than 51.7 reported in the previous month. 

Meanwhile, the prevailing cautious sentiment around European equity markets, which tends to underpin the Japanese Yen's safe-haven appeal, was also seen as one of the key factors keeping a lid on any meaningful recovery. 

It would now be interesting to see if the cross is able to defend the very important 200-day SMA support or bears maintain their near-term dominant position as investors might now start repositioning for the BoE's Super Thursday next week. 

Technical levels to watch

Any subsequent weakness below the 149.00 handle is likely to find support near the 148.70-65 region, which if broken should pave the way for an extension of the pair's bearish trajectory. 

On the upside, momentum beyond 149.60 immediate resistance is likely to confront fresh supply near the key 150.00 psychological mark, above which the cross could recover back to 150.45-50 supply zone.