EUR/JPY treading water around 131.80, ADP, FOMC eyed

• The cross stays sidelined around 131.80 ahead of key data.
• Weekly gains remain limited around the mid-132.00s.
• US ADP jobs report and the FOMC meeting next of relevance today.

EUR/JPY is attempting a sideline pattern in the lower end of the range near 131.80, finding some decent support in the mid-131.00s so far, coincident with the 55-day sma.

EUR/JPY looks to data

The cross is looking to stabilize in the 131.80 zone so far this week amidst the generalized lack of direction in the global markets ahead of the key FOMC meeting due later in the NA session.

The cross came under renewed selling pressure following tops in the 133.50 area seen in mid-April, with the single currency suffering the bulk of the selling wave after the cautious stance from the ECB and some apparent slowdown in the economy of the region, all intensified by the sharp rebound in the demand for the buck.

Looking ahead, the ADP employment report is due next although the FOMC meeting expected later in the day should drive the sentiment among market participants in the near term and ahead of Friday’s Non-farm Payrolls.

EUR/JPY relevant levels

At the moment the cross is up 0.02% at 131.82 and a breakout of 132.49 (200-day sma) would expose 132.99 (100-day sma) and finally 133.52 (high Apr.24). On the downside, the next support aligns at 131.57 (low May 1) followed by 129.97 (low Apr.3) and then 128.94 (low Mar.23).