GBP/JPY hit four-day low in Asia

• GBP/JPY  rejected at 100-day moving average (MA) hurdle earlier this week.
• The pair hit a four-day low of 148.86 in Asia, looks set to report 2 percent drop in the first quarter.

GBP/JPY failed to beat the resistance of 100-day MA on March 28 and fell to 149.00 yesterday, only to extend losses further to a four-day low of 148.86 in the Asian session today.

The retreat from the 100-day MA indicates the corrective rally from the March 2 low of 144.99 may have run out of steam.

The data released yesterday showed the UK GDP increased by 1.8 percent between 2016 and 2017, slightly less than the 1.9 percent seen between 2015 and 2016, meaning the UK was the slowest-growing major economy in the world and that seems to have hurt the Pound.  

Also worth noting is the fact that GBP/JPY is set to report a 2 percent quarterly drop, given the stock markets remained risk averse for a better part of the first quarter. As for today, the pair may remain comatose, given the major markets are closed on account of Good Friday.

GBP/JPY Technical Levels

A close below 148.43 (200-day MA) would open doors for 147.67 (March 23 low) and 147.05 (March 19 low). On the other hand, a move above 149.48 (ascending 5-day MA) could yield a rally to 150.32 (March 21 high) and 150.58 (100-day MA).