Nikkei Terminated By Strengthening Yen
Starting the Japanese stock market trading Wednesday morning (27/5), the Nikkei index turned lower from the previous trading gains. Japanese yen managed to rise after the great distress be a debilitating traded overnight US stock market trading this morning.
The strong yen makes the market took profit that suppress shares of exporters such as Hitachi shares opened slumped 1:28%, Mitsubishi Materials shares down 0.84%, Nissan Chemical Industries shares shrank 0:44%, Panasonic shares slumped 0:35%, Sony shares plunge 1:47% , shares of Suzuki Motor slipped 0.50%.
Nikkei index opened this morning looked negatively by 56.84 points, or 0:28% that became 20380.68 points from the previous closing position at 20437.48 points and reached the highest position previously traded at 20473.85 and the lowest point at 20378.77 points previously.
But unlike the movement of Nikkei index futures this morning which appears to be still opened positively by 35 points or 0:17% being 20,400 points from the previous closing position at 20 365 points and reached the highest position previously traded at 20 490 points and the previous low at 20 475 points.
Based on the results of the previous closing, the Analyst Vibiz Research Center estimates that today’s Nikkei index movement seems to be trying to penetrate the first support at 20 375 points with MA5 on BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the next support at MA5 above 30 314 points with BB10 daily.
If the movement of the Nikkei index managed to reverse direction menguatmaka estimated that the movement of the index will try to penetrate the first resistance at 20 530 points with MA5 on BB10 daily, if successfully penetrated the first resistance is expected that it will try to penetrate the next resistance at 20,600 points with MA5 on BB10 daily.
Technically, the index likely to weaken on the trading session today, Wednesday (27/05), 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 20 370 and 20 425 20300. If it fails in, then the next index is expected to tend to retest the resistance level 20440 and continued until the possibilities are in the 20500 area.
Sterling Down Lowest
Pound sterling continued weakening against the dollar and touched a two-week low after data showed US core durable goods orders rose in April, making the dollar received additional personnel to strengthen.
The US Commerce Department reported US durable goods orders fell 0.5% in April, but core orders were not entering the transport sector rose 0.5% in the calculation of the previous month, after economists’ expectations. Besides the core capital goods orders, which reflects the investment business, rose 1%.
Urge the strengthening of the dollar began on Friday after data showed US core inflation rose 0.3% in April, higher than economists’ estimates of 0.2%. In addition chairwomen US central bank, Janet Yellen, the same day confirmed its intention to raise interest rates this year.
GBPUSD traded the range of 1.5385 at 20:50 GMT, after briefly touching daily highs and lows 1.5474 1.5359
Technically, the trading session today, Wednesday (27/05), pound sterling-dollar pair has an opportunity to move in a negative trend.
The weakening of the pound sterling mainly expected soon reexamine the minimum Support at 1.5310 and maximum 1.5250. Meanwhile, if the Pound able to break and hold above 1.5378, then the other alternative scenario that is likely to test resistance Pound in 1.5400 and 1.5460 area.
Gold Slump After US Data
Gold prices fell further below $ 1200 levels after data US durable goods orders rose more than expected in April, Tuesday (26/5).
On the Comex in New York Mercantile Exchange, gold futures for August delivery hit an intraday low of $ 1,187.60 a troy ounce, a level not seen since 12 May last. The US Commerce Department said that orders the core durable goods orders rose 0.5% in April, beating the market forecast of 0.4%.
Orders for core capital goods, rose 1.0% last month, surpassing expectations for a 0.3% gain. The data raised hopes optimistic in the current quarter are the increase in interest rates higher.
Additionally on the Comex, silver futures for July delivery fell 36.3 cents, or 2:13%, trading at $ 16.68 a troy ounce. The US dollar index rose 0.7% to 97.14, the strongest level since April 27 last.
Technically, gold in today’s trading session on Wednesday (27/05) 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 1183.10 and re-test the maximum level of 1178.25. However, if the price of gold is able to break and hold above 1188.40, the estimated price of gold could potentially test the Resistance 1190.25 and 1195.50.
