Nikkei Opened in Green Zone, Yen Starting Depressed
Japan’s Nikkei index Monday morning the second week of May (11/5) successfully opened up to continue the positive trend was traded last weekend. Japanese Yen back into strong pressure dollars to signal amplifier stocks in early trading today.
Global fundamental data turned positive, better US data on Non-Farm Employment Change and US Unemployment Rate Data at the end of the US trading session on Friday burdensome movement of the Japanese yen against the US dollar. The weakening of the Japanese Yen has become a strong impetus for exporter shares traded this morning.
Exporter stocks are stocks that strengthens Daikin Industries opened at 1:45 sped%, Canon shares jumped 1:45%, shares of Honda Motor surged 1:51%, Isuzu Motors shares shot 1.94%, Mazda Motor jumped 3:10%, shares of Mitsubishi Motors soared 1:10%, Nissan Motor surged 1:15%, and shares of Toyota Motor gained 0.88% significantly.
This morning the Nikkei index opened successfully jumped by 258.39 points or 1:37% by becoming 19..637,58 points from its previous close at 19379.19 points and reached the highest position earlier on 19458.75 points and the previous low at 19302.71 points. Likewise, the movement of Nikkei index futures this morning are re-opened sped by 300 points or 1:53% to be 19,680 points from its previous close at 19 380 points and reached the highest position before the 19 470 points and the previous low at 19 305 points.
Based on the previous closing, the Analyst Vibiz Research Center estimates that the movement of the Nikkei index today will try to penetrate the resistance at 19 495 points by the middle MA5 BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the next resistance at 19 610 points with MA5 BB10 middle daily.
If the movement of the index reversed course to weaken, it is estimated that the movement of the index will try to penetrate the support at 19 260 points by the middle MA5 BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the next support at 19 140 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Monday (11/05) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 19700 and 19750. If it fails at 19 635, then the next index is expected to tend to retest the support level of 19600 and continued until the possibilities are in the 19650 area.
Sterling Ends Highest Level
The Conservative Party’s victory brought the exchange rate of pound sterling rallied against the dollar, and reached its highest level for 10 weeks on Friday. Prime Minister David Cameron’s party managed to secure the parliament after winning 331 seats of the total 650 seats. While the biggest competitor, the Labour Party leader Ed Miliband only gained 232 seats.
The victory is somewhat surprising, after earnings before election polls show support with a vote against the Conservative Party Labour Party relatively balanced, so this election is called will be the toughest in recent decades, and difficult to predict.
The movement of sterling were previously overshadowed political instability immediately rose sharply after the victory of the Conservative Party. But behind the victory of the movement of sterling in the long term will be overshadowed by the possibility of the release of the UK from the European Union. In a political campaign, David Cameron promised to renegotiate the UK relationship with the EU, and then hold a referendum on whether to remain part or out of the EU by the end of 2017.
Technically, the trading session today, Monday (11/05), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the Euro mainly expected soon retests the support at 1.5380 minimum and maximum 1.5325. Meanwhile, if the Euro is able to break and hold above 1.5426, then the other alternative scenario that Euro likely to test resistance in 1.5450 and 1.5510 area.
Gold Prices Retreat Moment
Gold prices slipped lower in Asian trade on Monday (11/5) in the center of China’s rate cut, although copper prices rose.
On the Comex in New York Mercantile Exchange, gold futures for June delivery fell 0:08%, at $ 1,188.00 a troy ounce. On Sunday, the PBOC cut the benchmark interest rate a quarter percentage point 5:10% from the previous 5.35%, in order to spur the growth of economic activity. China reported a trade surplus of $ 34.1 billion in April, below expectations for a surplus of $ 39.5 billion.
While exports slipped 6.4% from a year earlier last month, disappointing expectations for a 2.4% gain, while imports fell 16.2%, worse than the expected decline of 12.0%.
Last week, gold prices had experienced a sustained increase in nonfarm payrolls report. The US Labor Department reported that the US economy added 223 000 new jobs in April, just below expectations for growth of 224,000 jobs.
While the unemployment rate fell 5.4% to a seven-year low of 5.5% last month. On the other comex trading, silver futures for July delivery fell 0:09% to $ 16,450 troy ounce. Copper for July delivery rose 0.46% to a level of $ 2,928 per pound.
Technically, gold in today’s trading session on Monday (11/04) 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 1185.10 and re-test the maximum level of 1180.25. However, if the price of gold is able to break and hold above 1189.20, the estimated price of gold could potentially test the Resistance 1192.50 and 1197.10.
