The Euro index down to 1047.5, Yen index rises to 744.3

• The Euro index is in decline after Tuesday’s jump to the 1051.6 level. 
• During the Asian trading session, the yen index gained support at the 742.0 level.

Euro index chart analysis

The Euro index is in decline after Tuesday’s jump to the 1051.6 level. We tried to reach that level again on Wednesday but were stopped at 1051.3. Failure to form a new high leads to the initiation of a bearish consolidation and a drop below 1050.0. During this morning’s Asian session, we managed to stay in that zone.

With the EU session’s start, the euro index’s withdrawal to 1047.3 levels begins. Here, we test the weekly open price and hope to stay above it. We have additional bearish pressure in the EMA200 at the 1048.3 level. This could push the index below the weekly open price and form a new weekly low. Potential lower targets are 1047.0 and 1046.5 levels.

Yen index chart analysis

During the Asian trading session, the yen index gained support at the 742.0 level. After the check, we saw a bullish consolidation up to the 744.1 level. We stop there for now and make a short pullback to 743.5. Additional pressure on today’s high creates the EMA200 moving average. This could lead to increased bearish consolidation and a drop in the index to lower levels. Potential lower targets are 743.0 and 742.5 levels.

We could get additional support in the EMA50 moving average in the zone around 742.5 levels. We need to get back above the EMA200 at 744.0 levels for a bullish option. Then, we have to maintain our position up there in order to initiate further positive consolidation and recovery of the yen index from there. Potential higher targets are 744.50 and 745.0 levels.