Wall Street Support the Strengthening of the Nikkei
Japanese stock market, the Nikkei, rose in today’s trading, the yen weakened against the dollar give positive sentiment to the stock, coupled with the US stock exchanges were again scored highest on record. Market focus today on monetary policy announcement from the Bank of Japan.
The yen is currently trading above the level of 119 per dollar following a rise in US Treasury yields. The increase in yield reflects investor confidence will rise in interest rates by the Federal Reserve half of this year, rising interest rates will make the assets of the US and the dollar becomes more attractive to investors.
BOJ is not expected to add monetary stimulus after the last time did it last October to stimulate the Japanese economy and achieve the inflation target of 2%. Japan’s economy emerged from recession in the fourth quarter after growing 2.2%. In the second and third quarter Japan’s economy shrank -7.1% and -1.9% due to tax increases in April.
The headline Nikkei index rose 0.86% currently be 18141.89. While the Nikkei futures traded in the range of 18 130 at 7:39 pm, with daily highs and lows 18 075 18140
Technically, the index on the trading session today, Wednesday (18/02) 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 18200 and 18250. If it fails i n 18150, we then estimated the index tends to retest the support level of 18 130 and continued until the possibilities are in the area of 18 080.
UK CPI Data Undermines Pound
The pound moved lower against the US dollar on Tuesday, after data showed the rate of consumer price inflation in the UK slowed to a record low in January, though the sentiment against the greenback is still fragile after a series of US economic data that results are pessimistic.
GBP / USD hit a $ 1.5337 during the European trading session, it is the lowest level at this time, the pair is currently consolidating the range of $ 1.5370.
Cable may be found support at $ 1.5206, its lowest level February 12 and resistance level at 1.5444, the highest level on Monday.
In economic reports, the statistics bureau said the UK consumer price inflation rate slowed to 0.3% last month from 0.5% in December, the results are in accordance with market expectations.
At the monthly level, consumer prices slipped 0.9% in January, compared with expectations for a 0.8% decline and after moving flat in December.
Technically, the trading session today, Wednesday (18/02), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5300 and 1.5250 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5351, then the other alternative scenario that Pound chance to test resistance in 1.5320 and 1.5280 area.
Gold Drops Ahead of Lunar New Year
Gold held near 6-week lows with smaller trading volume ahead of the big day China, one of the major consumers of precious metals. The number of traders is expected to fall over the long holiday so that the demand for gold will go down.
“Day in the Chinese New Year holiday begins tomorrow, and participants will be sidelined until Tuesday next week. The absence of these key physical markets indirectly eliminate the cantilever thus increasing the potential drop in the price of gold,” said UBS analyst.
Investors also will be watching the results of the Fed meeting on Thursday morning, waiting for the signal benchmark US interest rate hikes. Gold fell in the past three weeks after US economic data improved the basis rate hike opportunities. In Europe, the positive sentiment will appear Greece’s financial position to signal the possibility of Greek banks will get a bailout. Speculation will the agreement appears to signal the European Central Bank (ECB) will not stop the funding of Greece. Reuters proclaim the ECB will provide funding for the continuation decision Greek banks on Wednesday.
Technically, gold in today’s trading session on Wednesday (18/02) 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 1202.33 and re-test the maximum level of 1197.73. However, if the price of gold is able to break and hold above 1207.00, the estimated price of gold could potentially test the 1209.40 and 1211.72 resistance.
