The Euro Index continues to slide, while the Yen is stable

• During the Asian trading session, the Euro index was retreating below the 1047.5 level. 
• The yen index could close this week positively if it stays above the 742.8 level. 

Euro index chart analysis

During the Asian trading session, the Euro index was retreating below the 1047.5 level. With the start of the EU session, we get a new bearish impulse and the formation of a new weekly low at the 1045.3 level. We get that support, initiate a bullish consolidation from there, and return to the 1047.5 level again. We hope that we will manage to hold on here and initiate further positive consolidation.

In the zone around 1048.0, we encounter the EMA200 moving average, which could disrupt our bullish plans. Moving above, it proves that the euro index has the strength for further recovery. Potential higher targets are 1048.5 and 1049.0 levels. If we fail to move above the EMA200, the euro will be under pressure to start a new pullback. That would bring us back to testing this morning’s low and potentially forming a new one.

Yen index chart analysis

The yen index could close this week positively if it stays above the 742.8 level. Today’s high was at 744.0 level, and we were close to reaching yesterday’s 744.2 level. We entered the EMA200 zone, which increased the pressure on the yen to take a more concrete step in some direction. A new bounce above 744.0 would be great for continuing the bullish side.

We could test the 744.2 level again, and depending on the momentum, we might even see a new weekly high. Potential higher targets are 744.5 and 7445.0 levels. For a bearish option, we need a pullback to 742.5 levels. Thus, we fall below the EMA50 moving average and the weekly open price. The yen breaks through the previous bullish formation and strengthens the bearish momentum. Potential lower targets are 742.0 and 741.5 levels.

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