GBP/JPY on a back-foot as traders turn cautious ahead of key data

• Risk-off takes place ahead of important data from leading global economies.
• Failure to surpass 50-day SMA highlights 200-day SMA support.

While lower D1 closes in last two-day and inability to surpass 50-day SMA question the GBP/JPY buyers, the quote witnesses pullback during early Friday as it trades near 145.25 ahead of important data.

Prices have been strong off-late as optimism surrounding an end to Brexit deadlock confronts holidays at Japan.

The improvement in the risk tone can also be counted as a positive factor for the pair’s recent uptick. 

However, traders turned cautious during early Friday awaiting key economic data from the EU, the US, and the UK.

Global barometer of risk sentiment, 10-year treasury yield of the US, also took a step back from its latest increase to 2.545%.

The April month Markit services purchasing manager index (PMI) from the UK is expected to overcome from the contraction region figure of 48.9 to 50.5.

Technical Analysis

50-day simple moving average (SMA) level of 146.00, followed by 146.55 and 147.00, seem important upside barriers for the pair to clear while 200-day SMA near 144.55 and 143.75 number indicating 100-day SMA shouldn’t be missed during the declines.