Euro Index and Yen Index: Euro index rises to 1056.8 level

Euro index chart analysis

During this morning’s Asian session, the euro index increased to 1056.8, forming a six-month high. Saturation is occurring in that zone, and we are now looking at a pullback from that level below 1056.0. The pair broke through that level as well, going down to 1055.2. We could get new support here if we look at last week’s movement and how the pair moved and made pullbacks. We test the EMA50 moving average and expect support as in previous cases.

If the bearish pressure is too strong, the euro index will have to break through the previous bullish formation and form a new low. Potential lower targets are the 1054.0 and 1053.50 levels. Great support in the EMA200 moving average awaits us at the 1053.5 level. For a bullish option from the current position, we need a return above the 1055.6 level. Above that line, we return to the positive side and hope for further recovery. Potential higher targets are 1056.0 and 1057.0 levels.

Yen index chart analysis

This morning, the new May low of the yen index was formed at the 715.5 level. We managed to stabilize there and start a correction by moving up to 717.2 levels. If this consolidation continues, we could continue to the 718.0 level and test the EMA50 moving average there. By breaking above that level, we strengthen the bullish momentum and continue with further recovery.

Potential higher targets are 719.0 and 720.0 levels. Additional resistance is in the EMA200 moving average in the 721.0 zone. We need a negative consolidation below the 716.5 level for a bearish option. Thus, we return to the negative side again, going below the weekly open price. There is an increase in bearish pressure, and we are heading towards this morning’s support level. Potential lower targets are 715.0 and 714.0 levels.

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