Nikkei Not Impressed With Yen
Nikkei slumped after the continued strengthening of the yen continues to undermine investor optimism about the outlook for Japanese exporters’ earnings. USDJPY is now trading at 116.22 after earlier in the Asian session had won 115.88; the highest level in the last 4 weeks.
A weaker yen is one of the factors sustaining the performance of the index so that the strengthening of the Japanese currency tukat also give negative sentiment towards the Japanese stock market performance. Japanese exporters such as Sony, Nikon, Kyocera, and Nissan Motor tracked down more than 3%.
Energy sector and other related industries will come back to get attention after failing to sustain a rebound in oil prices and back down to near a 5-year low this morning. Meanwhile, this morning Tokyo released data on tertiary industry activity that can give hope for improvement in the Japanese economy. Although lower than the predicted increase of 0.3%; Japanese tertiary industry activity rose 0.2% in November after falling 0.2% in October.
Fairly negative external sentiment after poor US earnings season made investors worried about the world economy. The world’s leading banks Bank of America and Citigroup reported a decline in revenue in the fourth quarter as the reduction in fixed-income trading revenue. Retailer Best Buy warned income would be burdened by deflation pressure and weak demand for some electronic products. The world’s largest computer chip maker Intel predicts sales in the first quarter will be lower than estimated and this sparked concerns over the sharp decline in the PC industry. Nikkei futures down 1.87% and is now trading at 16810.
Technically, the index on the trading session today, Friday (16/01) 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 16 670 and 16 615 16725. If you fail, then the next index is expected to tend to retest the support level that is 16 580 and continued until the possibilities are in the area of 16 530.
Dollar Moves Variatif Post SNB
US Dollar (USD) received positive sentiment from the European Court’s decision, which approved the European Central Bank (ECB) monetary policy easing. But market participants also need to look at the latest policy Swiss National Bank (SNB).
Bloomberg data show, the pair EUR / USD fell 0.29% to 1.1755. This is the lowest level since mid-July 2014. While the pairing USD / JPY rose 0.13% to 117.48. But USD beaten by the Australian dollar (AUD) 0.9% to a level of 0.8233.
According to analysts, market participants should also look at ending the SNB steps to protect economic policy of the euro area debt crisis. SNB interest rates fell to minus 0.75% from minus 0.25%. As a result, currency Swiss franc soared. Yesterday, Bloomberg Dollar Spot Index fell 0.4%.
Technically, the trading session today, Friday (16/01), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1580 and 1.1550 maximum. Meanwhile, if the Euro is able to break and hold above 1.1638, then the other alternative scenario that Euro chance to test resistance in 1.1650 and 1.1700 area.
Although Gold Prices Down But Still Close Higher Level 4 Months
Commodity exchanges trading precious metals on Friday (16/1), the price of gold and silver was observed to decrease naturally with trading lower but still supported to be close to the high level of 4 months.
Ongoing trade in the Asian session, gold futures for February delivery was trading lower 0:25% at $ 1.261.70 per troy ounce on the Comex division of the New York Mercantile Exchange. Gold price movements in the morning it was observed to hit a session low $ 1.259.40 to $ 1.264.00 level daily and daily highs for the session.
Meanwhile, silver futures for March delivery traded natural look with a lower reduction 0:40% at the level of $ 17,033 per troy ounce by the observed moving touched a session low $ 16,908 to $ 17,053 level daily and daily highs for the session.
Various US economic reports last night that showed that the decline in some sectors such as the labor market and manufacturing has pushed the price of gold has rallied strongly to a near 4-month high.
The increase in the gold price last night was preceded by a weak US labor market conditions based on the report of the US Department of Labor states that the number of jobless claims increased by 19,000 to a seasonally adjusted 316,000 in the week ended January 10.
Other support also provides a natural gold prices rallied on Thursday night has come from a Federal Reserve official report stating that the Philadelphia area Philadelphia manufacturing index experienced a decline, seasonally adjusted to 6.3 in December.
Meanwhile, the delay interest rate hikes by the Fed seen supporting gold prices experienced a bullish today, when it has lowered the relative costs for the owner of the precious metal.
Another factor pushing gold rally experienced also looks after the Swiss National Bank announced that they refuse to continue a minimum exchange rate against the euro at 1.20 per euro, and followed by trimming interest rates into negative territory.
Technically, gold in today’s trading session on Friday (16/01) 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 1255.10 and re-test the maximum level of 1250.73. However, if the price of gold is able to break and hold above 1259.90, the estimated price of gold could potentially test the 1262.40 and 1263.72 resistance.
