Yen Defeated Because Swelling of the Japanese Trade Deficit
After successfully pressed the US dollar in yesterday’s trading ended early this morning, the Japanese Yen fell back by negative sentiment in the country that weakens the exchange rate movements. Foreign exchange spot market trading this morning’s Asian session the USDJPY pair had gained after the overnight US trading session mixed pressured by the US housing sector data.
The negative sentiment that weaken the Yen stronger this morning when the office of the Ministry of Finance of Japan announced to the public performance of foreign trade in May were worse than the previous period. Data released showed more swelling trade deficit by decreasing the domestic Japanese export performance.
Economic indicators that show the data, Japan Balance of Trade in May dropped to -216 B yen of achievement in April at -53.44 B yen. But the May data is still above expectations for a decline -344.5 B yen. Things that cause the addition of this deficit deteriorating export performance into 5740 B yen from 6551.9 B yen.
Once the data is released, the yen instantly depressed and the USDJPY pair opened at 123.36 in early trading today (01:15 GMT, June 17) moved higher 6 pips or 0.04% to 123.42 positions. After successfully touched the highest range of 123.80 and 123.89 lows in earlier trading, analyst Vibiz Research Center estimates that this pair will go to the range 123.53 to the MA 11 daily and if it does not penetrate the USDJPY will go down to the level of 123.10-123.40 at MA 3 time frame Daily.
Technically, the trading session today, Wednesday (17/06), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon re-examine the minimum support at 123.00 and 122.10 maximum. Meanwhile, if the Yen were able to break and hold above 123.40, then another alternative scenario the Yen likely to test resistance in 123.80 and 124.10 area.
Political Tensions Affected Hang Seng
Hong Kong shares trade on the day Tuesday, the Hang Seng index closed with the increase volume of weakness in early trading to reach its lowest in two months, due to the electoral tensions China and Hongkong terrorists in government offices.
The Hong Kong government offices observed today guarded by the authorities, after the previous day authorities Hongkong captures ten people suspected of carrying explosives.
In addition, the investors are cautious on the occurrence of the confrontation of democracy in China electoral reform package, so that helped topple the entire sector stocks trading on Tuesday.
Shares of the financial sector is still the largest ballast, fell by 514.01 points to 38699.72 points from the previous closing position at 39213.73 points, followed by the residential sector plunged 287.09 points to 35364.14 points from the previous closing position at 35 651, 23 points.
Next followed by the industrial sector shrank 150.39 points to 14747.93 points from the previous closing position at 14898.32 points, as well as the utilities sector declined 79.77 points to 53181.17 points from the previous closing position at 53260.94 points.
While stocks ballast is Hang Lung Properties shares of 1.25%, shares of China Shenhua Energy 2.78%, shares of China Resources Land 3:38%, shares of Cheung Kong Holdings property 1:59%, Hang Seng Bank shares 0.84%, shares of Industrial & Commercial Bank of China 1.99% , Belle International Holdings shares 2.74%, shares of Ping An Insurance Group Co. of China 1:53%, shares of China Life Insurance 2.84%, shares of China Petroleum & Chemical 2:18%, Bank of China 1.73%, PetroChina 2:49% stake, and CNOOC for 2.60%.
The Hang Seng Index ended Tuesday fell by 295.11 points, or 1:10% to 26566.70 points from the previous closing position at 26861.81 points and reached the highest position in trading today at 26892.88 and the lowest point at 26553.04 points.
Similar to the movement of the Hang Seng Index futures traded on Tuesday, ending fallen by 272 points or 1:02% to 26 232 points from the previous closing position at 26 504 points and reached the highest position in the 26 645 points and the lowest was 26 218 points.
At the Hong Kong stock exchange trading Wednesday, fundamentally still will respond to the results of the performance of the US stock market is still due to domestic lonely fundamental directives.
Technically, the index on the trading session today, Wednesday (17/06) 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, signalling upside.
It is estimated, the index test the first resistance level of 26 530 and 26 479 26590. If it fails in, then the next index is expected to tend to retest the support level that is 26 450 and continued until the possibilities are in the 26400 area.
Gold Strengthening Ahead of Fed’s Decision
Dollar rebounded ahead of monetary policy decisions of the Federal Reserve made of gold fell on Tuesday. While the protracted problems Greece failed to boost demand for gold as a safe haven.
Investors are now focusing on the meeting of the Federal Open Market Committee (FOMC) of the Fed, which lasted for two days, and ended on Wednesday. The Fed is expected to provide the latest economic projections; in addition to the projected interest rates are widely anticipated market participants. Yet the Fed is also expected to re-emphasize the increase in interest rates would depend on economic data.
In recent months, gold is not able to strengthen much due uncertainty and the time interest rates. The appeal of gold tends to decrease if the interest rate increased, due to the absence of the yield earned on an investment in gold.
US data released on Tuesday showed housing start fell in May, but soaring permission to build up to the highest level in eight years, became the starting signal housing decline is only temporary.
Gold on Tuesday closed at XAUUSD $ 1,182.60 per troy ounce, with daily highs $ 1,187.80, and the lowest $ 1,176.03.
Technically, gold in today’s trading session on Wednesday (17/06) 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 1175.10 and re-test the maximum level of 1170.60. However, if the price of gold is able to break and hold above 1181.70, the estimated price of gold could potentially test the Resistance 1183.10 and 1178.10.
