- The highest value for the euro index this week was at 1046.3 yesterday.
- The Japanese Yen Index has been on a strong upward trend since the beginning of the week.
Analysis of the Euro index chart
The highest value for the euro index this week was at 1046.3 yesterday. After forming that higher value, the indicator begins to decline and falls below the 1045.0 level. We could not stop there but we continued to reach 1042.0 levels. There, we are forming a new weekly low, and there is a high chance that we will see a drop to a new low because we have news from the European Central Bank about the future interest rate. Expectations indicate that interest rates will remain at the same level.
This will increase volatility on the chart, but it is difficult to determine the direction of movement. Possible lower targets are 1041.0 and 1040.0 levels. If we take the impulse above 1043.0 and the EMA200, we have the opportunity to start a stronger recovery. Possible higher targets are 1044.0 and 1045.00 levels.
Yen indicator chart analysis
The Japanese Yen Index has been on a strong upward trend since the beginning of the week. The weekly low was on Monday at 744.8. Today the price jumped to 756.0. Strong bullish consolidation began this morning at the opening of the day at 748.3. During the Asian session, the index quickly advanced above the 752.0 level. We see continuation and growth to 756.0 levels in the EU session.
If consolidation continues today, we expect to see a continuation of the upside. Possible higher targets are 757.0 and 758.0 levels. A new negative consolidation and pullback below 754.0 is needed for a bearish option. With this move, we will move away from the previous high and increase the downward momentum. This would lead to a new downward wave that would take us to lower levels. Possible lower targets are 753.0 and 752.0 levels.
