EUR/JPY turned to the downside after the release of the NFP. The data boosted the US dollar and also the yen. The pair bottomed after Wall Street’s opening bell at 130.16 and then bounced modestly to the upside. It was trading at 130.34/37, down 0.35% for the day so far and less than a hundred pips below the level it had a week ago. Recovery over? Two weeks ago EUR/JPY started a recovery after falling to 126.16, the lowest level since April and then accelerated to the upside, gaining more than 300 pips last week. The rally of the pair was capped by the 20-week moving average, that has been offering resistance since September. The euro tested the 20-WMA when it approached 132.00 but lost strength. For the recovery to continue the pair needs to make a significant close above 132.00 - 132.20, where a downtrend line from May stands. In the short term the area around 130.00 (Feb 03 low) has become a relevant support in the short term and a break lower would weaken the euro. For more information, read our latest forex news.