Euro index and yen index in search of support levels

Euro index chart analysis

The euro index was under strong pressure yesterday at the 1050.0 level. It did not last to stay above; a pullback to 1047.0 levels followed. During the Asian trading session, the index managed to stay in that zone, and with the start of the EU session, there was a new increase in pressure on the euro. We then see a break below to a new weekly low at the 1046.0 level.

Potential lower targets are 1045.0 and 1044.0 levels. We need a positive consolidation and a move above the 1048.0 level for a bullish option. With that, at least for a short time, we return to the bullish side, and now we need to maintain our position there. If we succeed, we go further to 1049.0, where the EMA200 moving average awaits us.

Yen index chart analysis

The value of the yen index fell this morning to a new April low at 735.6 level. This confirms that the Japanese currency remains under pressure even after the increase in the interest rate by the Bank of Japan. The decline is stopped here and we now see an attempt to recover to the 737.0 level. Additional resistance could be the EMA50 moving average, and we could easily move above with new momentum.

Potential higher targets are 738.0 and 739.0 levels. We need a negative consolidation and a return to the zone below the 736.0 level for a bearish option. This puts pressure on this morning’s low again. Strong bearish momentum would push the yen index to a new low and thereby extend the bearish option. Potential lower targets are 735.0 and 734.0 levels.

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