• EUR/JPY reverses two consecutive daily advances, sits below 132.00.
• Gains look capped by the 130.70/85 band.

EUR/JPY’s recovery seems to have met a decent hurdle in the mid-132.00s for the time being.

While further consolidation looks likely in the near term, price action in the cross is expected to hinge exclusively on the results from US NFP due later in the session.

That said, extra gains need to surpass the 132.70/85 zone, where coincides weekly highs and the resistance line off 2021 lows (January 18). On the downside, the 100-day SMA at 130.90 should hold the initial test in case sellers regain the upper hand.

In the broader picture, while above the 200-day SMA at 127.97 the broader outlook for the cross should remain constructive.

EUR/JPY DAILY CHART