GBP/JPY sticks to modest recovery gains, around mid-138.00s

   •  Improving risk sentiment undermines JPY’s safe-haven demand and helped gain traction.
   •  The GBP bulls still seemed reluctant amid persistent UK political & Brexit uncertainties.

The GBP/JPY cross built on the overnight modest recovery from fresh multi-month lows and continued gaining some positive traction through the mid-European session on Thursday.

In absence of fresh negative UK political/Brexit headlines, a slight improvement in the global risk sentiment weighed on the Japanese Yen's safe-haven status and was seen as one of the key factors behind the pair's mildly positive tone through the mid-European session.

However, persistent uncertainties over the recent UK political chaos, coupled with growing fears over a no-deal Brexit held investors from placing any aggressive bullish bets and might now keep a lid on any strong follow-through recovery for the cross. 

The broader market risk-sentiment, along with any incoming Brexit-related headlines might act as key determinants of the pair's momentum on Thursday amid absent relevant fundamental catalyst in terms of any major market moving economic releases from the UK.

Technical levels to watch