Nikkei Thursday Opened Red Zone
Japanese stock market in early trading this week (7/5), the Nikkei index opened with a continuing downward trend in the previous six trading sessions and reached its lowest four weeks after the 3-day holiday trade. Japanese Yen successfully freed from the pressure of the US dollar at the end of trading last night into this morning ballast market movements.
The Yen strengthening the movement burdensome shares of exporters such as Bridgestone shares opened significantly weakened by 1:56%, stocks opened lower Daikin industries which significantly by 1:22%, stocks opened lower Denso significant of 1.05%, Honda Motor shares opened significantly weakened by 1:37 %, Konica Minolta shares opened significantly weakened by 1:14%, Mitsubishi Corp shares opened significantly weakened by 1:06%.
The movement of Nikkei index opened lower this morning significantly by 188.47 points or 0.96% sed adi 19343.16 points from the previous closing position at 19531.63 points to reach the previous high at 19852.66 points and the previous low at 19502.61 points. But inversely proportional to the movement of Nikkei index futures opened higher this morning at 95 points or 0:49% being 19,370 points from the previous closing position at 19 275 points to reach the previous highs at 19 790 points and the previous low at 19 515 points.
Based on the previous closing, the Analyst Vibiz Research Center estimates that the movement of Nikkei index today will still try to penetrate the support at 19 446 points with MA5 under BB10 daily, if the movement of the index broke through the first support then expected to try to penetrate the next support at 19 315 points with MA5 under BB10 daily.
If the movement of the index managed to turn toward stronger, it is estimated that the movement of the index will try to penetrate the resistance at 19 625 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the next resistance at 19 745 points with MA5 under daily BB10.
Technically, the index likely to weaken on the trading session today, Thursday (07/05), test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level that is 19 290 and 19 340 19225. If it fails in, then the next index is expected to tend to retest the resistance level that is 19 370 and continued until the possibilities are in the area of 19 450.
Euro Dollar Yield Difference
The dollar touched its lowest level against the euro since late February on Wednesday after a rise in bond yields in Europe sparked demand euro and disappointing US data reinforces expectations that the Federal Reserve will delay interest rate hikes. ADP National Employment Report showed private employers in the US added 169 000 jobs last month, the lowest level since January 2014 and well below economists’ estimates.
European bond yields continue to rise, with the yield on the benchmark 10-year bond Germany touched its highest level this year at 0.595%. The difference between the yield on the benchmark 10-year bond USA and Germany narrowed to around 165 basis points, the narrowest since the end of March, making the euro more attractive for investors who chase yield.
According to the strategic European investors felt more optimistic about the euro zone today, and anxiety about the negative German bond yields has been lost, so the euro got a boost. The euro is currently trading at around 1.1330 against the dollar, after touching a high level around 1.1365 area. Meanwhile, ADP data is an early indicator that non-farm payrolls in May will likely show disappointing results. Economists expect the addition of as many as 224,000 jobs last month.
Technically, today’s trading session on Thursday (07/05), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.1390 and maximum 1.1450. Meanwhile, if the Euro unable to break below 1.1332 and then survive at that level, the alternative scenario will be Euro likely to test support in 1.1300 areas and 1.1250.
Gold Prices Continue Decline And Stop Rally in Morning Session
Metal commodity exchanges trade futures on Thursday (7/5), the price of gold and silver has traded lower when the statement Yellen pressing back the metal prices for natural waterfall decline.
Ongoing trade in the Asian session, gold futures for June delivery has declined 0.01% to trade at $ 1.190.20 per troy ounce on the Comex division of the New York Mercantile Exchange. This morning gold price movements have engaged hitting $ 1.89.20 to session lows at $ 1.192.00 daily and daily highs for the session.
While the movement of silver futures for July delivery was down by 0:07% observed at the level of $ 16,495 per troy ounce where the price of silver has been moving touched a session low $ 16,487 to $ 16,553 daily and the level of daily highs for the session.
In the previous session, gold prices have decreased slightly to end the rally for two days, when the report forecast employment growth in the Americas region showed the occurrence of obstacles.
Based on the official report released by Automatic Data Processing Inc. reported that US employment growth only increased by 169,000 in April, having previously increased by 175,000 in March.
Meanwhile, concerning the relationship rise in interest rates in the US by the Fed, is still a major concern for the perpetrators of investors. In a statement from Janet Yellen last night explained that this time the Fed will be watching in particular against the growth of US jobs report on Friday tomorrow.
Any improvement in the labor market in the Americas region can increase the confidence of central bank policy makers to immediately normalize the situation in June. On the other hand, when a decline in the growth performance of the labor market in the Americas region, the rate hike will be delayed at least until September or could be in December this year.
Technically, gold in today’s trading session on Thursday (07/05) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1183.50 and re-test the maximum level of 1178.10. However, if the price of gold is able to break and hold above 1188.30, the estimated price of gold could potentially test the Resistance 1190.40 and 1195.72.
