The EUR/JPY has reversed two straight daily gains and is now trading below 132.00.
The 130.70/85 band appears to be a ceiling for gains.
For the time being, the EUR/JPY recovery appears to have hit a solid wall in the mid-132.00s.
While more consolidation appears likely in the near term, price action in the cross is expected to be driven solely by the findings of the US jobs report, which will be released later in the session.
Extra gains, however, are required to break through the 132.70/85 zone, which coincides with weekly highs and the resistance line off the 2021 lows (January 18). In the event that sellers regain control, the 100-day SMA around 130.90 should hold the initial test.
In the bigger picture, as long as the cross stays above the 200-day SMA at 127.97, the prognosis for the cross should remain positive./n
