Nikkei Concerned With Japan’s economy
Nikkei recorded a weakening thin after a series of Japanese data released today signal the Japanese economy will still slumped in recession in the last quarter of 2014. Although improved, the level of annual household expenditure Japan unspoiled decline 2.5% in November.
Performance of industrial production and retail sales also disappointing that industrial production fell 0.6%, while annual retail sales recorded an increase of only 0.4% in November. The Nikkei 225 fell 0.13% and is now trading at 17784.57
Japanese inflation also slowed in November, weighed down by the fall in world oil prices and slowing consumer spending. Inflation (consumer price index) recorded only an annual 2.4% rise; lower than the 2.9% rise in October.
Annual core inflation (which has issued securities sales tax increase in April last and volatile food prices) also increased by only 0.7%; lower than the 0.9% rise in October. However, with inflation slowed and is below the target of 2% BoJ then this may have raised expectations for additional stimulus from the central bank again.
From the corporate sector, Sumitomo Mitsui Financial Group (SMFG) rallied 1.1% after its subsidiary Sumitomo Mitsui Banking (SMBC) will announce the purchase of retail banking business unit of Citigroup in Japan worth 40 billion yen ($ 333 million). Zojirushi shares fell 7% after the kitchen equipment manufacturer predicts a 31% decline in profits for the last quarter of 2014.
Technically, the index on the trading session today, Friday (26/12) 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 17850 and 17900. If it fails at 17 790, then the next index is expected to tend to reexamine the level of support that is 17 760 and proceed to the possibility of being in the 17700 area.
Dollar Stopping Advantage Against Yen
The dollar weakened against the yen, ending a five-day progress, amid speculation the recent strengthening too fast.
Dollar has excelled at least 4% of the 16 major currencies this year and was extended yesterday’s gains after a report showed the world’s largest economy grew at its fastest pace in more than a decade. Taiwan dollar slumped to its lowest level in four years. Ruble rose in the fourth day.
The dollar fell 0.2% to 120.51 yen at 17:00 pm in New York after rising to 120.83 yen yesterday and is the highest level since December 9. The US currency fell 0.2% to $ 1.2196 per euro after touching $ 1.2165 yesterday. The yen was little changed at 146.92 per euro.
Technically, the trading session today, Friday (26/12), the dollar yen pair a chance to move in the negative trend.
The weakening of the yen mainly expected soon reexamine the minimum support at 119.10 and 117.50 maximum. Meanwhile, if the Yen was able to break and hold above 120.24, then the other alternative scenario that Yen chance to test resistance in 121.00 and 123.50 area.
Gold Slips in Trading
Gold prices slipped on Wednesday, adding to the selloff that followed the US gross domestic product data is strong.
Gold for February delivery fell $ 4.50, or 0.4% to settle at $ 1,173.50 an ounce on the New York Mercantile Exchange. The contract fell by 1.9% in the period of “short vacation” after a big sell-off on Monday.
Data released on Tuesday showed that the US economy grew 5% on an annualized basis in the third quarter. However, orders for goods in the US fell 0.7% in November.
In the field of metal, silver for March delivery fell nearly 6 cents, or 0.4% to settle at $ 15.71 per ounce, while platinum for January delivery fell 60 cents, or less than 0.1% to settle at $ 1,191.10 per ons. Palladium futures for March delivery settled $ 6.25, or 0.8%, at $ 807.80 per ounce.
High grade copper for March delivery settled more than one cent lower, or 0.4% at a rate of more than $ 2.85 per pound.
Technically, gold trading session today, Friday (26/12) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1187.10 and re-test the maximum level of 1192.87. However, if the price of gold was unable to break and stays below 1182.60 then estimated the price of gold could potentially test the 1180.78 and 1175.40 Support.
