Euro Index and Yen Index: The yen is starting a new recovery
- The euro index is retreating after this morning’s bullish consolidation to 1051.8.
- This morning, new support for the yen index was formed in the Asian session at the 709.6 level.
Euro index chart analysis
The euro index is retreating after this morning’s bullish consolidation to 1051.8. There, we encounter strong resistance, and with a bearish impulse, we retreat to 1049.5 levels. If this trend continues, the index would drop to test last week’s support zone. Potential lower targets are 1049.0 and 1048.5 levels.
We need a positive consolidation and a move above the 1051.0 level for a bullish option. With that step, we move to the positive side above the weekly open price and the EMA50 moving average. With the new support, we expect to see further recovery and a visit to higher levels. Potential higher targets are 1051.5 and 1052.0 levels. Greater resistance to further recovery is the EMA200 in the zone of 1052.3.
Yen index chart analysis
This morning, new support for the yen index was formed in the Asian session at the 709.6 level. With a couple of bullish impulses, we see a return above the weekly open price. The growth was stopped at the 713.5 level with the resistance of the EMA200 moving average. We are now pulling back slightly to the 713.2 level in search of new support. If it stays above the EMA200, we can expect further recovery to the bullish side.
Potential higher targets are 714.0 and 714.5 levels. We need the yen index to fall below 713.0 for a bearish option. With that step, we move away from the daily high and turn to the bearish side. After that, the index should pay attention to the 712.0 level and the support of the EMA50 moving average. The inability to hold there will push us below, and we will return to this morning’s support zone. Potential lower targets are 711.0 and 710.0 levels.
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