- Today, the euro index fell to its lowest value of the week, 1,036.8.
- During the Asian session this morning, the yen index rose to levels of 753.8, forming a new weekly high.
Graphical analysis of the Euro index
Today, the Euro index retreated to its lowest value of the week, 1036.8. After that, we managed to stop further decline and slightly recover to 1038.6. This could be the beginning of a new bullish consolidation and a recovery of the index. By returning above the level of 1040.0, we would have made a significant step. With stabilization at that level, the Euro index would have a good background for a more concrete continuation on the bullish side.
Possible upper targets are the levels of 1042.0 and 1044.0. For a bearish option, we need a negative consolidation and a return to this morning's low. This way, we put pressure on that level, which could create a new bearish momentum and push the Euro Index to a new weekly low. Possible lower targets are the levels of 1036.0 and 1034.0.
Graphical analysis of the yen index
During the Asian session this morning, the yen index rose to 753.8 levels, forming a new weekly high. After that, the bullish momentum subsided and the index retreated to 743.0 levels. Here, we tested the previous low and the EMA 50 moving average. If the yen finds a new support here, it could return to the bullish side. Possible higher targets are 756.0 and 758.0 levels.
For a bearish option, we need a negative consolidation and a pullback below the 50 EMA. This is a signal that the yen is in trouble, and we will look for a pullback and new support. Possible lower targets are the 740.0 and 738.0 levels. The 200 EMA is moving down in the area of 728.0 levels. On Tuesday, the Bank of Japan raised the interest rate from 0.10% to 0.25%, which positively affected the yen, and based on this, we expect a strong yen in the coming days.
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