The euro index is back above 1050.0; the yen is struggling

• The Euro index has been in a strong bullish consolidation since the beginning of this week. 
• This week, we are looking at a bearish trend in the yen index below the 735.0 level.

Euro index chart analysis

The Euro index has been in a strong bullish consolidation since the beginning of this week. On Tuesday, after testing the EMA200 with a strong impulse, we started an uptrend that continues today. This morning, we saw a jump to the 1051.2 level, and a new weekly high was formed there.

We stop there and start a pullback to the 1050.0 level. In the last few hours, the euro has been under pressure and is turning to the bearish side.

It is possible that we will see a further pullback and a search for new support. Potential lower targets are 1049.5 and 1049.0 levels. For a bullish option, we need new support at 1050.0 and the initiation of a positive consolidation.

After that, the euro index would turn to the bullish side with an eye on this morning’s high. Potential higher targets are the 1051.0 and 1051.5 levels.

Yen index chart analysis

This week, we are looking at a bearish trend in the yen index below the 735.0 level. For the fourth day in a row, the index is in a constant bearish consolidation, and in the first hour, we fell to a new lowest value at the 724.8 level. The picture tells us that we could see a further continuation to the bearish side and the formation of a new lower low. Potential lower targets are 724.0 and 723.0 levels.

We need a new positive consolidation and a return to the 727.0 level for a bullish option. With that step, we have formed a bottom, and it will be easier for us to move from there to the bullish side. Potential higher targets are 728.0 and 729.0 levels. We will have the first major resistance in the zone of 730.0 levels in the EMA50 moving average.