GBP/JPY closed below 200-DMA for the first time in 2-1/2 months

The risk-off in the markets and the resulting carry unwind strengthened the bid tone around the Japanese Yen, pushing the GBP/JPY below 200-DMA in the overnight trade.

The cross closed below the 200-DMA for the first time since Feb 6 and continues to trade below the key moving average line in the Asian session today. The 200-DMA line is seen at 137.02 levels. 

Focus on UK wage growth

The bid tone around Sterling would strengthen later today if the data shows UK wage growth picked up pace in February. Moreover, survey data from Visa and BRC retail sales released earlier this week have shown a drop in spending due to higher inflation. 

The inflation pinch could act as a drag on the GDP. Hence, it is highly essential that wage growth picks up pace. UK is also due to release labor market data for the month of March. 

GBP/JPY Technical Levels

The pair was last seen trading around 136.95 levels. A break above 137.02 (200-DMA) would open doors for 137.42 (5-DMA) and 138.08 (10-DMA). On the other side, breach of support at 136.45 (Jan 16 low) would open up downside towards 136.00 (zero figure) and 135.62 (Nov 14 high).