Nikkei in The Red Zone, Expect BoJ
After rising in two consecutive days, the Japanese Nikkei index is now stuck in the red zone on the last trading this week. Market participants are waiting for the results of the Bank of Japan’s monetary meeting today.
BoJ expected to keep monetary policy and an optimistic outlook for the Japanese economy. Although inflation in June slowed, but the slowdown is most likely caused by the energy and food sectors which have a high volatility.
Yen which returned close to the level of 124.00 per dollar also put a halt to the increase in the Nikkei. On Wednesday, the yen touched 125.00 level, who helped the Nikkei recorded gains of two consecutive sessions. Yan and the Nikkei is likely to have a negative correlation, so the attenuation can strengthen the Nikkei.
From the floor of the stock, the stock is gaining attention today, among others, SoftBank which had gained 4.5%, after announcing a share buyback of $ 1 billion and earnings were higher than expected. While Takata Corp. which has been in the spotlight due to defective airbags, managed to rise 0.8% after it has recorded a profit.
Technically, the index on the trading session today, Friday (07/08) likely to weaken, 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 20 525 and 20475. If it fails at 20580, then the next index is expected to tend to retest the resistance level that is 20 620 and continued until the possibilities are in the area of 20 675.
Pounds Drops After The Monetary Decisions
Pound sterling fell sharply after MPC minutes showed voting 8 to 1 to not change the level of the benchmark interest rate, followed by a unanimous vote to keep the BoE stimulus level.
The central bank for the first time released its monetary meeting decision in conjunction with the previous MPC meeting minutes and quarterly inflation report. Previously, the interest rate decision, minutes and reports once in the first quarter inflation was released in a different day. But this time the third high impact news is released together known as the “Super Thursday” or the “Super Thursday” due to the news release potentially trigger considerable fluctuations in currency Sterling.
Market participants digest that the number of voting members of the board of MPC to raise interest rates below the estimated 8: 1, below estimates that there will be more voters to raise interest rates earlier, namely voter MPC member Weale, McCafferty and Miles. But in reality there is only one vote out of the hawkish McCafferty to raise rates 25 bps.
While the BoE quarterly inflation report, the central bank estimates that inflation target of 2 per cent is still pessimistic. Where the collapse of energy prices tend to drag inflation at low levels of at least up to the mid-201, although the assessment at a rate of wages and productivity improved.
Level BoE kept interest rates unchanged at 0:50%, monetary meeting will be followed by a press conference Mark Carney 45 minutes ahead which would also be a catalyst for clues on the direction of changes in monetary policy of the major central banks. BoE Governor Carney previously issued outlook that is more hawkish than the other MPC board member. If the BoE comments Carney this time reduces the hawkish tone of the market disappointment bearish correction could potentially add pressure on GBPUSD pairing.
So far the pairing GBPUSD slumped -0.58% to 1.5515, after reaching the highest point intraday at 1.5603 and the lowest level at 1.5506 harianya. The closest support level 1.5485, falling again below that area could potentially add as technically bearish pressure targeting the next support area at 1.5400and resistance 1.5550 and 1.5620.
Technically, the trading session today, Friday (07/08), 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 1.5450 and maximum 1.5400. Meanwhile, if the Pound able to break and hold above 1.5515, then the other alternative scenario that is likely to test resistance Pound in 1.5550 and 1.5610 area.
Gold Market Are Lonely
The fall of the current gold price also had an impact on reducing trading activity in the gold commodity exchanges; as a result very few brokers are active in it. Are you still active as well?
Gold prices eroded and approached cheapest prices in the last five years, one of the basic elements involved in the exchanges is reduced is the amount of participation brokers. Until early August, the same time-the most calm and gold prices have fallen 8% of the price of 2014, gold trading volume commodities exchanges amounted to only 40% of the average trading volume during the 100 days. With the number of participants decreased, fluctuations in the price of gold are at its lowest range in nine months.
The gold brokerage apparently awaiting the US employment report will be released on Friday. The rise in the uptake of employment will be a positive impetus for the Federal Reserve to tighten monetary policy soon. This step will make gold decreases its appeal as an investment destination because gold assets does not provide interest yield.
Quiet the market makes minimal price fluctuations also take place, at least describe the taste of the market that was bored with the current conditions. In short, only a few market player were still in stock. Projected increases in US interest rates will further reduce the enlarged brokers transacting interest therein.
Commodity price of gold for delivery in December rose on Thursday (06/08) at ends at price $ 1,090.10 / onz or up 0.4% on the COMEX exchanges, NY. Fluctuations in the gold price in 60 trading days honing in on Thursday’s 11.8, it was the lowest since last October. The more financial managers release their position in the last two weeks in a row and from the world of banking, including Goldman Sachs itself has asserted that the gold price will go down in the future.
Technically, gold in today’s trading session on Friday (07/08) 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 1083.10 and re-test the maximum level of 1078.25. However, if the price of gold is able to break and hold above 1088.70, the estimated price of gold could potentially test the Resistance 1090.25 and 1095.10.
