Euro index recovers; yen index is looking into the abyss

Last Friday, the Euro index dropped to 1039.0, forming a new monthly low value.
On Friday, the yen index rose to 743.5 levels, forming a weekly high there.

Euro index chart analysis

Last Friday, the Euro index dropped to 1039.0, forming a new monthly low value. By the day’s end and the market’s closing, the index recovered to 1041.2 levels. During this morning’s Asian session, the euro continues to recover to 1043.0 levels. Here, we encounter the EMA50 moving average, which, for now, represents resistance to our bullish continuation. We need a stronger impulse that would break above and form a new daily high.

This would move us above the EMA50 and it would be much easier to start a further recovery. Potential higher targets are 1044.0 and 1045.0 levels. We need a negative consolidation and pullback to the 1041.0 weekly open price for a bearish option. By moving below it, we go to the bearish side, and we can expect a visit to last week’s low, and maybe we will see the euro index at a new low.

Yen index chart analysis

On Friday, the yen index rose to 743.5 levels, forming a weekly high there. After that, there was a pullback until the market closed at 740.0. During this morning’s Asian trading session, the index continued to weaken and with strong bearish impulses, we went down to the 735.8 level. Here, we are very close to testing last week’s low at the 735.6 level. This new visit could easily push the yen to a new weekly low.

Potential lower targets are 735.5 and 735.0 levels. We need a new positive consolidation and a return to the 737.0 level for a bullish option. With this, we successfully created a bottom from which we would have support for our recovery to the bullish side. Potential higher targets are 737.5 and 738.0 levels. At 738.0, we meet the EMA50 moving average, which could determine the future trend.