EUR/USD, USD/JPY consolidate in quiet European session ahead of US NFP

Major currency pairs traded in narrow ranges through the European session on Thursday as markets consolidated ahead of the US non-farm payrolls release, with no first-tier data or headlines to drive direction. EUR/USD drifted sideways after Eurozone retail sales fell in July, pointing to softening consumer spending and reinforcing the case for a cautious European Central Bank. USD/JPY was the session's focal point, bouncing near the major 155.00 support area, a level that has repeatedly attracted buyers and now defines the short-term structure: a sustained break below would open the door to deeper yen strength, while a hold could set up a retest of recent highs. FX option expiries for the 10am New York cut added to the pinning effect around key strikes. Interest rate expectations shifted only modestly across the week, leaving positioning light into the payrolls print. Traders should expect volatility to expand sharply on the data release, with liquidity thin in the run-up and range breakouts prone to false signals.