The Euro Index is above 1048.0; the Yen index is stable
- During the Asian trading session, the Euro index reached a low of 1046.9.
- On Friday, the yen index recovered from the previous drop to 736.5.
Euro index chart analysis
During the Asian trading session, the Euro index reached a low of 1046.9. There is additional support in that zone in the EMA200, which does not allow us to slip below, and that is why we are now looking at bullish consolidation. This leads to growth to 1048.3, where we form a daily high. We stop there and slightly retreat to the 1048.0 level. We expect to get new support soon and continue the previous recovery.
Potential higher targets are 1048.5 and 1049.0 levels. For a bearish option, we need a pullback of the Euro index below the 1047.00 level. Thus, we fall below the EMA200, which further increases the pressure on the collapsed euro. Below is room for a bigger retreat; the potential lower targets are the 1046.5 and 1046.0 levels.
Yen index chart analysis
On Friday, the yen index recovered from the previous drop to 736.5. During the Asian session, the index rose to 744.3 levels, forming a two-day high there. After that, the yen starts to weaken and makes a retreat to the 742.0 level. Here, we come across the EMA50 moving average and watch to see if we get support in it or go down. We expect to climb to a new weekly high above the 744.0 level if we get support.
Potential higher targets are 745.0 and 746.0 levels. We need a break below 742.0 and the EMA50 moving average for a bearish option. Below, we go to a new daily low and confirm that the yen index is under bearish pressure. Potential lower targets are 741.0 and 740.0 levels. Despite the interest rate hike by the Bank of Japan, the yen is still making slow progress.
