The Euro index falls to 1048,0, while the Yen jumps to 730,0

• During the Asian trading session, the Euro index advanced to 1054.6 levels.
• At the start of the Asian session, the yen index was under great pressure and we saw a drop to 704.0 levels.

Euro index chart analysis

During the Asian trading session, the Euro index advanced to 1054.6 levels. After that, we saw a strong bearish consolidation and a drop to the 1048.0 level. There, we came across the EMA200 moving average, which stopped the further retreat, and we managed to hold above it now. The euro index recovers to 1049.7, moving away from this morning’s low.

Potential higher targets are the 1051.0 and 1052.0 levels. We need a negative consolidation and pullback below the EMA200 moving average and 1048.0 level for a bearish option. By falling below, we go to a new daily low and confirm the bearish dominance. Potential lower targets are 1047.0 and 1046.0 levels.

Yen index chart analysis

At the start of the Asian session, the yen index was under great pressure and we saw a drop to 704.0 levels. After the consolidation, a strong bullish impulse followed and a jump to 730.0 levels. That’s where we come across EMA200 and we didn’t manage to stabilize and maintain it. Then, the index begins to weaken again and retreats to 721.5 levels. Here we could find support at the EMA50 moving average.

If we succeed in that, we turn again to the bullish side and look at the recovery. Potential higher targets are 724.0 and 726.0 levels. A negative consolidation could push the yen index below the EMA50 and 720.0 levels. With that step, we would continue the retreat, and the potential lower targets are the 718.0 and 716.0 levels.