The Euro index rises, while the Yen index falls to a new low

• The three-week high of the euro index was formed this morning at the 1049.1 level.
• During this morning’s Asian trading session, the yen index continued its previous bearish trend.

Euro index chart analysis

The three-week high of the euro index was formed this morning at the 1049.1 level. For now, we are holding below that level and pulling back to the 1047.0 support level. This morning, the index had a bullish gap at the market opening. We may see the gap closing before continuing to the bullish side. This means we will see a test of the weekly open price and the EMA50 moving average.

With potential lower targets at 1044.0 and 1043.0 levels, the euro index is showing signs of stabilization above the weekly open price and the gap closing. This sets the stage for a new positive consolidation, a promising development for the market. The support of the moving averages further confirms the potential for a bullish trend. The next step is to test this week’s high, with potential higher targets at 1050.0 and 1051.0 levels.

Yen index chart analysis

During this morning’s Asian trading session, the yen index continued its previous bearish trend. A new low was formed at the 695.7 level. The situation is unchanged in the current EU session, and the index is maintained at the 696,0 level. If something does not change, an impulse to a new lower low will follow. Potential lower targets are 695.0 and 694.0 levels.

For a bullish option, it’s crucial that the yen index first returns above the 698.0 level. This would signify a move above the weekly open price to the positive side. We are currently in close proximity to the EMA50 moving average and need another impulse to move above. If we manage to stabilize there, it would be an excellent move before continuing to the bullish side. Potential higher targets are 699.0 and 700.0 levels.

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