Euro Index and Yen Index: Yen could recover above 717.0

Euro index chart analysis

During this morning’s Asian trading session, the Euro index dropped to 1049.4, a new weekly low. We haven’t moved much since then, and the index is now at 1049.8. Yesterday, we attempted to get back above the EMA200 moving average at the 1053.5 level, but we didn’t have enough strength to move above. From that moment until now, we have been in a bearish consolidation and expect further continuation and a new lower low formation.

Potential lower targets are 1049.0 and 1048.5 levels. We need a positive consolidation above the 1050.0 level for a bullish option. After that, we look at 1051.0, the daily open price. Breaking that level will make it easier for us to start further recovery. Potential higher targets are 1051.5 and 1052.0 levels.

Yen index chart analysis

On Wednesday, the yen index fell to a weekly low of 709.7. After that, yesterday, we saw consolidation in the 710.0-712.0 range. This morning in the Asian trading session, the index initiated a strong bullish consolidation, forming a daily high at the 716.3 level. For now, we stop there and pull back to the 713.5 level where we get support from the EMA200 moving average.

With the new support, we have the opportunity to initiate a positive consolidation and continue the recovery. Potential higher targets are 717.0 and 718.0 levels. We need a negative consolidation and a return below the EMA200 moving average for a bearish option. With that, we are moving to the negative side and will be pressured to start a pullback to a new support level.

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