Euro Index in bullish trend, Yen slips lower under pressure

• During the Asian trading session, the Euro index continued its bullish trend, climbing to 1053.4. 
• Expectations that the Yen index could start a recovery have already cooled in the Asian session as we just continued the previous bearish consolidation.

Euro index chart analysis

During the Asian trading session, the Euro index continued its bullish trend, climbing to 1053.4. With that, we move above last week’s high and strengthen the bullish option. We received support this morning at the 1051.6 level from the EMA50 moving average. Potential higher targets are the 1054.0 and 1054.5 levels.

We need a negative consolidation and pullback to this morning’s support zone for a bearish option. A negative impulse and a drop below form a new daily low. This confirms the bearish momentum, and we expect to see a further decline in the Euro index. Potential lower targets are 1051.0 and 1050.5 levels. Additional support for the index in the 1050.5 zone is the EMA200 moving average.

Yen index chart analysis

Expectations that the Yen index could start a recovery have already cooled in the Asian session as we just continued the previous bearish consolidation. A new low was formed at the 721.1 level, and there is every chance that we will soon see a new lower low. We are approaching the support zone from the beginning of May. Potential lower targets are 720.0 and 718.0 levels.

We need a positive consolidation and a break above the 722.0 level for a bullish option. In that zone, we meet the EMA50, and we need to move above it in order to get its support. If we succeed in this, we expect a recovery to the 725.5 level and the EMA200 moving average. Above 726.00 opens the door for further recovery of the yen index. Potential higher targets are 728.0 and 730.0 levels.