Profit-Taking Paint Nikkei
Nikkei slips after easing weaker yen encouraged investors to profit-taking. USDJPY traded 119.71 in early Asian session; looks difficult to 7 years away from the weakest level achieved 120.24 yesterday. A weaker yen is one of the pillars of Japanese exporters stock rally since mid-October so that the easing of the weaker yen can mean less reason to push stocks higher rise. Nikkei futures down 0.56% and is now trading at 17 770.
Investors also looked disappointed with the lack of details provided above the ECB’s monetary policy outlook further. ECB’s Draghi still open additional opportunities monetary stimulus as he uttered the central bank is reviewing the purchase of all types of assets except gold. However, the absence of an explanation of just how large the stimulus to be provided and when the stimulus is done to make investors disappointed.
The market also looks wary awaits US jobs data later that night that will give you further instructions on Uncle Sam’s economy. Non-farm payrolls increased by 230,000 predicted for October after rising 214,000 in September. On the other hand, the US unemployment rate is expected unchanged at 5.8% in October.
From the corporate sector, stock car air bag manufacturer Takata fell 2% after Canada filed a class-action claims over the air bag problems produced Takata. Itochu shares rose 1% after the release of a report that the Japanese trading company in collaboration with Thailand’s CP Group companies to buy shares in Citic Securities, a leading finance company in China.
Technically, the index on the trading session today, Friday (05/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 17900 and 17950. If it fails in 17845, we then estimated the index tends to retest the support level of 17800 and continued until the possibilities are in the area of 17 750.
Euro Rebound After Draghi’s Press Conference
The euro rebounded from the lowest level in more than 2-year versus the US dollar on Thursday after European Central Bank President Mario Draghi did not provide a strong enough signal of additional monetary stimulus.
In addition, the ECB also cut its growth forecast for the euro zone next year to 1.0% of the projection in September by 1.6%. Inflation expectations for 2015 are also reduced to only 0.7% from the previous 1.1%, well below the ECB’s target of close to 2%.
“There is no strong signal in terms of a policy of quantitative easing, although the ECB to revise down its forecast for growth and inflation. It makes sense if the market then expects the ECB will act next year,” said Vassili Serebriakov, currency strategist at BNP Paribas in New York . “Not many specific comments, that might have pushed the euro slightly higher.”
Technically, the trading session today, Friday (05/11), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon re-examine the minimum support at 1.2320 and 1.2250 maximum. Meanwhile, if the Euro is able to break and hold above 1.2374, then the other alternative scenario that Euro chance to test resistance in 1.2400 and 1.2450 area.
Gold Slips Post ECB Statement
Gold fell after European Central Bank said it is not considering adding gold purchases. President of the ECB, Mario Draghi, mengatakansebagai monetary stimulus plan in the next quarter, the ECB discussed the possibility of purchase of various assets except gold. However, investor focus switched to the current US employment report on Friday, disappointing data could trigger the purchase of precious metals.
Gold has rebounded about 6.8% of four-year lows reached on November 7. The low price of gold sparked speculation increased purchase of physical gold, including the central bank. Rally in the stock market have made gold less attractive to investors, while low inflation makes the demand for gold as an inflation hedge diminished value.
Oil prices declined also putting pressure on gold after the correlation of oil and gold prices rose in recent days. Gold closed at $ 1,205.85 per troy ounce, the lowest level of the highest daily $ 1,201.15 and $ 1,213.21.
Technically, gold in today’s trading session on Friday (05/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1200.33 and re-test the maximum level of 1195.53. However, if the price of gold is able to break and hold above 1203.60, the estimated price of gold could potentially test the 1205.10 and 1210.72 resistance.
