Nikkei Still Steady
The improved performance of domestic manufacturing Japanese cherry in October seemed to still be the biggest boosters sentiment along the Japanese stock market trading Friday, with the Nikkei index managed to cut the weakening acquired in September traded before, but a little different from the movement of the Japanese Yen traded almost stagnant Asian session on Friday.
Traded Japanese stock market its fourth weekend was successfully supported by gains in Isuzu Motors 3.71%, Honda Motor 4:02%, shares of Kawasaki Heavy Industries 4:26%, Sumitomo Heavy Industries 5:47%, the stock Fujifilm Holdings 3.82%, shares of TOTO 3.81%, shares Hino Motors 3.64%, shares of Suzuki Motor 2:53%.
The Nikkei spot Friday looked successfully closed sharply higher at 3.89,43% points or 2:11, to become 18825.30 points from the closing position at the end of the Japanese stock market trading prior to the position of 18435.87 points and was able to record the highest traded stocks surge stock market today on 18.915,64 points and the lowest decline Friday in the position of 18746.61 points.
Likewise, the movement of Nikkei index futures on Friday were still strengthened by 95 points or 0:51%, to be 18 820 points from the closing position at the end of the trade in the stock market earlier in position 18 725 points, and was able to record the highest shares surge at the end of this week position 18 945 points and lows at 18,800 points.
Japanese stocks traded Monday, predicted that investors will get back forward and respond to the results of the performance of the US stock market and the movement of the Japanese yen, which is due to landing lonely sentiment data in the country.
Technically, the index on the trading session today, Monday (26/10) 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 tends to increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first support level 19000 and 18950. If it fails at 19 070, then the next index is expected to tend to retest the resistance level 19120 and continued until the possibilities are in the area 19 170.
US Dollar Close Higher
The dollar rose to two-month highs against other major currencies on Friday, due to interest rate cuts in China are staggering reduced risk sentiment and upbeat US report on the previous session continued to support the greenback.
The euro erased earlier gains and the EUR / USD down 0.74% to settle at two-month lows ie 1.1022.
The greenback strengthened after the PBOC cut interest rates for the sixth time since November in another attempt to boost the economy in the country.
The dollar also pushed higher after reports emerged on Thursday that showed that the number of individuals filing for initial jobless benefits in the week ended October 17 rose 3,000 to 259,000.
Technically, today’s trading session on Monday (26/10), 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 1.1070 and maximum 1.1130. likely to test support in 1.1000 area and 1.0950.
US Data – The Gold Mover
The gold market participants will await directions from the release of US economic data this week, along with the central bank meeting of the US Federal Reserve and Bank of Japan.
Gold erase intraday gains on Friday and ended lower last week.
Asta Mahadana futures analyst saw that the precious metal has given up on the pressure of the strong rise in the US dollar index.
The US dollar index rose sharply last week and reached its highest since mid-August. The dollar strengthened, especially against the euro, after a meeting of the European Central Bank last week, which showed easing of monetary policy will probably continue this year. The dollar also rose from a rate cut by China’s central bank said Friday.
The US Federal Reserve will also hold a meeting on 27-28 October and many analysts expect monetary policy unchanged. Fed statement will be released on Wednesday and no press conference related to this meeting.
In the future, some analysts still see the possibility of the Fed raising interest rates at a meeting in December and analysts will be waiting for instructions from the report Wednesday.
Market participants will also monitor the situation of the US debt ceiling. The US federal government will move closer to the time limit which needs to raise $ 18.1 trillion borrowing limit state. Jacob Lew finance minister has estimated that the government will run out of cash to pay its obligations on November 3, with no increase to the current debt ceiling limit.
Next week, market participants will also monitor the BOJ meeting on Friday. The central bank is also scheduled to release inflation projections with estimates of GDP. Most analysts expect Japanese monetary policy also remained stable.
Technically, gold on the trading session today, Monday (26/10) the potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1167.10 and re-test the maximum level of 1172.87. But if the gold price could not break and stays below 1162.90 then predicted gold prices could potentially test the Support 1160.78 and 1155.40.
