The yen stopped its upward trend

• At the start of the EU session this morning, the Euro Index retreated to 1,045.2, forming a new weekly low.
• The yen index's high for this week was formed at the level of 736.2.

Graphical analysis of the Euro index

At the start of the EU session this morning, the Euro Index retreated to 1045.2, forming a new weekly low. After a brief consolidation, we saw the beginning of a recovery. The index rose to 1048.5 and is testing the EMA 50 moving average here. We expect the current bullish consolidation and growth to continue to a new daily high. Possible higher targets are the levels of 1049.0 and 1050.0.

An additional obstacle for the Euro index is the 200 EMA moving average in the area of ​​1051.0. For a bearish option, we need a negative consolidation and a pullback below 1047.0, the daily opening price. This takes us back to the downside and we will be under pressure to visit the previous support zone. Possible lower targets are the levels of 1045.0 and 1044.0.

Graphical analysis of the yen index

This week's high of the yen index was formed at the level of 736.2. After a short consolidation, the momentum weakens, forcing the index to turn to the bearish side. We are now at 727.0 and close to testing the daily opening price. Additional support in this zone is the EMA 50 moving average. Failure to hold at this level will force us to retreat further and look for a new support level.

Possible lower targets are levels 724.0 and 722.0. For a bullish option, we need to stabilize at the current level and stop further decline. The yen index would then have to start a new positive consolidation and recovery. Possible upper targets are levels 728.0 and 730.0.