EUR/JPY reverses the downside, clings to gains near 131.50

EUR/JPY’s weekly leg lower met support near 131.30.
EMU flash CPI came in at 1.9% YoY, Core CPI rose 0.9% YoY.
US ADP report surprised to the upside at 692K jobs in June.

EUR/JPY navigates a narrow range around 131.50 in tandem with the broad-based consolidative mood in the rest of the global assets.

EUR/JPY faces interim support near 130.80

EUR/JPY struggles for direction following four consecutive daily pullbacks, always amidst the better mood in the greenback, steady US yields and the offered note in the Japanese yen.

On the latter, the US dollar gains extra ground vs. its Japanese peer after the ADP report came in above estimates, showing the US private sector created nearly 700K jobs during last month. The print also reinforces the optimism ahead of Friday’s publication of the Nonfarm Payrolls.

However, the negative price action surrounding the single currency tempers any upside potential for the time being, leaving the cross floating in the lower bound of the weekly range.

Earlier in Euroland, advanced inflation figures noted the upside pressure in consumer prices eased a tad vs. the previous print, as the headline CPI rose 1.9% on a year to June and 0.9% when excluding energy and food costs.

EUR/JPY relevant levels

So far, the cross is advancing 0.01% at 131.41 and a surpass of 132.34 (50-day SMA) would aim for 132.69 (weekly high Jun.23) and finally 133.00 (round level). On the other hand, the next support aligns at 131.27 (weekly low Jun.30) followed by 130.80 (100-day SMA) and then 130.04 (monthly low Jun.21).

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