Euro and Yen Indices: Yen Index is rising above 760.0 level
- On Friday, we saw the Euro index pullback to 1041.5, followed by a slight recovery and the market closing at 1042.8.
- The yen index climbed to a new March high this morning at 760.1.
Euro index chart analysis
On Friday, we saw the Euro index pullback to 1041.5, followed by a slight recovery and the market closing at 1042.8. During this morning’s Asian trading session, the value of the index failed to break above that level and initiate a recovery. Now, before the start of the US session, we are again close to that zone, and we have an opportunity for a new attempt. We need a stronger impulse that would push us above the 1043.0 level.
This would allow us to break through the resistance zone and increase the chances of the euro index recovering. Potential higher targets are 1044.0 and 1045.0 levels. If we fail to move above, the index will pull back and fall to a new daily low. This increases the bearish momentum, and we expect a continuation and descent to a new lower support. Potential lower targets are 1041.0 and 1040.0 levels.
Yen index chart analysis
The yen index climbed to a new March high this morning at 760.1. During the Asian session, data on Japanese GDP was published. The data was positive and supportive of the yen’s current trend. The index is quite stable above the 757.0 level, and we expect further continuation and formation of a new daily high. Potential higher targets are the 761.0 and 762.0 levels.
We need a negative consolidation up to the 757.0 level for a bearish option on the yen index. There, we would test the weekly open price. A decline below pushes the yen to the downside, intensifying bearish pressure. After that, the index will be forced to retreat and search for new support. Potential lower targets are the 756.0 and 755.0 levels. The EMA50 moving average in the area around the 755.0 level could provide us with additional support and stop the pullback.
