Euro and Yen Indices: A good start to the week for the Euro

• We are currently looking at a jump in the Euro index to a new annual high at the 1043.7 level.
• The yen index fell to a multi-month low today at the 743.5 level.

Euro index chart analysis

We are currently looking at a jump in the Euro index to a new annual high at the 1043.7 level. We successfully crossed the previous high from last week at the 1043.4 level. During this morning’s Asian trading session, the index receives support at the 1041.0 level and starts a bullish consolidation from there. That got us to this high, and we expect to see a continuation and rise to a new one. Potential higher targets are 1044.0 and 1045.0 levels.

We need a negative consolidation and pullback below the 1043.0 level for the bearish option. That move would increase the pressure on the index to go into a pullback. If it triggers, a pullback to this morning’s Asian support zone could occur. A drop below could send the euro index deeper, but we have no such indications for now.

Yen index chart analysis

The yen index fell to a multi-month low today at the 743.5 level. The Japanese index remains under great pressure, as can be seen on the chart. We managed to fall below the November low, which was at the 744.6 level. For now, we stop at the new low and move up to the 744.1 level. We need a much stronger impulse to shake up the yen index and change the trend. To begin with, we need to get back above the 746.0 level.

Then, we would have to hold there and start a bullish consolidation from there. Potentially higher targets are 747.0 and 748.0 levels. In the zone around the 748.0 level, we come across the EMA200, and if we want a concrete bullish trend, we should move above it. Only then does the yen index have a chance to recover and initiate a longer-term recovery.