Japanese Yen Corrected – Nikkei Rise
Expiration strengthening Japanese yen this morning’s Asian session, seemed to give a positive boost to the Japanese stock market trading this morning (28/10), where the Nikkei index opened successfully turned the rebound, despite the negative sentiments in the country.
The economic indicators are domestic retail sales data on an annual basis in September last, which showed a decline sharply to -0.2%, from the previous release to 0.8%, with expectations of a decline, according to economists will have dropped to 0:52%.
Amplifier Japanese stock market this morning are shares of Mitsubishi Motors at 6:43%, shares of Tokyo Electron 4:37%, shares of Fanuc 2:48%, Mazda Motor 2:26%, Nippon Telegraph & Telephone 2:14%, Mazda Motor 2:45%, shares of Suzuki Motor 1.90% , shares Screen Holdings 1.76%.
The movement of Nikkei spot index opened higher this morning managed to be at 18838.93 points from the closing position at the end of the previous stock exchange trading on the position of 18777.04 points and managed to record the largest gains at the end of the previous stock exchange trading on the position of 18964.99 points at its lowest level at the end previous stock exchange trading on the position of 18760.79 points.
Likewise, the movement of the index Nikkei this morning, which successfully opened higher by 15 points or 0:08%, to be 18 845 points from the closing position at the end of trading stock exchanges previously at position 18 830 points and managed to record the highest increase at the end of trading the stock market earlier on position 19 020 points with the biggest weakness was traded earlier at position 18 685 points.
Based on the results of the closing end of the close of trading on the Japanese stock market earlier, the analyst estimated that the movement of Nikkei index today will potentially rebounding to penetrate the first resistance at position 18,980 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance then expected to try penetrate resistance at the second position with 19 125 points on BB10 daily MA5,
If the movement of the index managed to turn around the direction of lower back, it is expected to try to make up the first support at position 18,800 points with MA5 under BB10 H4, if the movement of the index broke through the first support it is expected to try to penetrate the second support at position 18 685 points with MA5 under BB10 H4.
Technically, the index on the trading session today, Wednesday (28/10) 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, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 18 960 and 18 905 19025. If it fails in, then the next index is expected to tend to retest the support level that is 18 860 and continued until the possibilities are in the area 18 810.
USD / JPY Potentially Range Ahead of Fed Meeting
Japanese yen weaken against the dollar on Wednesday (28/10) morning; triggered from the retail sales data that fell in the last month.
USDJPY rose a 0.01% to a level of 120.46. Sakura state retail sales index in September looks fell to -0.2% from 0.8% in the previous month; and the markets projecting down at the level of 0.4%.
US dollar index, which measures the greenback against the currencies of the other woods, raised 96.95 before at the level of 96.89.
Investors USD / JPY is likely to refrain from making great strides as they await the results of the FOMC, Dudin said Bahar, an analyst with Asta Mahadana Futures.
“As investors remain cautious today, the market sentiment seems to not turn into a risk-on”, he said.
He also estimated that USD / JPY will be in the range 119.80-120.70 area today.
“With the stock market are less clear direction, investors do not know what should be considered”, he added.
Technically, the trading session today, Wednesday (28/10), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 120.00 and 119.25 maximum. Meanwhile, if the Yen is able to break and hold above 120.43, then another alternative scenario the Yen chance to test the resistance at 120.80 and 121.30 area.
Gold Benefited By Disappointing US Data
Gold rose slightly in the first day of two-day meeting of the Federal Reserve in the middle of the nuances of vigilance and risk appetite weighed on sentiment negative US economic data is expected to affect the Fed to postpone increases in interest rates near zero level. Range trade in limited market opportunities awaits instructions when US interest rates rise.
Manufactured durable goods orders fell in September and a private survey results for consumer confidence surprisingly fell in October. Both the data indicated the US economic recovery that is uneven and can persuade the Fed to postpone their plans to raise interest rates.
Another factor is the collapse of the stock market and the global oil market. Risk aversion sentiment helped gold to collect profits after a decline during the four-session losing streak. The gold price ended at the level of $ 1166.95 per troy ounce, up 0.26%.
Technically, gold in today’s trading session on Wednesday (28/10) 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 1161.10 and re-test the maximum level of 1155.00. However, if the price of gold is able to break and hold above 1166.20, the predicted gold prices could potentially test Resistance ie, 1169.80 and 1174.10.
