GBP/JPY struggles near 1-month lows, around 150.00 mark

   •  The UK PIM-led GBP selling seems to have abated for the moment.
   •  Fading safe-haven demand further collaborates to limit downside.
   •  Looks vulnerable to slide further amid reduced BOE rate hike prospects.

The GBP/JPY cross held on to its weaker UK PMI-led losses, albeit has managed to rebound few pips from near 1-month lows touched earlier.

After yesterday's modest recovery attempt, the cross came under some renewed selling pressure on Tuesday and turned lower for the third session in the previous four following the disappointing release of UK manufacturing PMI. 

The post-UK PMI GDP selling now seems to have abated, with an offered tone around the Japanese Yen, amid fading safe-haven demand on easing geopolitical tensions, helping limit further downside, at least for the time being. 

Meanwhile, the incoming softer UK economic data further reduced the chances of an interest rate hike by the Bank of England next week and hence, a follow-through weakness, possibly towards testing the very important 200-day SMA support, remains a distinct possibility.

Technical levels to watch

Weakness below 149.80 level would reaffirm the bearish bias and accelerate the fall towards the 149.00 handle, coinciding with 200-DMA. On the upside, any meaningful recovery attempts might now confront fresh supply near 150.40 level, above which the cross is likely to head towards 150.75-80 supply zone en-route the 151.00 handle.