Euro Index and Yen: The Yen stopped its bullish run

• At the beginning of this morning’s EU session, the euro index retreated to 1045.2, forming a new weekly low.
• This week’s high of the yen index was formed at the 736.2 level. 

Euro index chart analysis

At the beginning of this morning’s EU session, the euro index retreated to 1045.2, forming a new weekly low. After a brief consolidation, we saw the start of a recovery. The index climbed to 1048.5 and is testing the EMA 50 moving average here. We expect the current bullish consolidation and growth to continue to a new daily high. Potential higher targets are 1049.0 and 1050.0 levels.

An additional obstacle for the Euro index is the EMA 200 moving average in the zone of 1051.0. For a bearish option, we need a negative consolidation and pullback below 1047.0, the daily open price. This pulls us back to the downside, and we will be under pressure to visit the previous support zone. Potential lower targets are the 1045.0 and 1044.0 levels.

Yen index chart analysis

This week’s high of the yen index was formed at the 736.2 level. After a short consolidation, momentum weakens, forcing the index to turn to the bearish side. We are now at 727.0 and close to testing the daily open price. Additional support in this zone is the EMA 50 moving average. The inability to maintain at this level will force us to retreat further and search for a new level of support.

Potential lower targets are 724.0 and 722.0 levels. For a bullish option, we need to stabilize at the current level and stop further decline. The yen index would then have to start a new positive consolidation and recovery. Potential higher targets are 728.0 and 730.0 levels.