Japanese Stocks Rebound
At the end of the Japanese stock market trading on Tuesday, the Nikkei index rebounded, out of the drop in pressure at the opening of trading on Tuesday. Strengthening Nikkei positive sentiment driven by positive economic data and a weaker yen, thus reinforcing the shares in the Japanese market. The Nikkei closed up 28.52 points or 0.15% to 19671.26
Data released this morning the current account (Current Account) Japan’s positive results. According to data released by the Ministry of Finance on Tuesday, Japan’s current account surplus reached ¥ 1.47 trillion ($ 11.95 billion), up from a surplus of 978.0 billion yen in September last year.
This afternoon also released the data Eco Watchers Survey Current October posted an increase in the position of 48.2, equal to a survey of economists. This result represents an increase from the previous results at the position 47.5.
Meanwhile observed this afternoon the US dollar rebounded against the yen back. USDJPY looks positive exchange rate rose 0.09% to 123.39. A weaker yen makes the Nikkei index.
A number of listed companies report earnings, a positive sentiment lifted the shares of Japan Display prices jumped almost 8%, while shares Screen Holdings closed up 6.1%, thanks to a 60 percent jump in operating profit in April-September. Yokogawa Bridge Holdings shares also jumped almost 12% to the highest of 4.5 months.
While the movement of Nikkei index futures Tuesday, also recorded an increase of 80 points or 0:41%, to be 19.700 points from the closing position at the end of the previous stock exchange trading at position 19 620 points.
For the next stock trading, will be released Wednesday, the economic indicator data Reuters Tankan Index November and Machine Tool Orders (YoY) in October. There has been no survey results and estimates of both the economic indicator data.
Analyst estimates that the movement in the Nikkei index will further continue strengthening limited to responding to the strengthening of the US dollar which weakened the Yen. Nikkei index will again try to penetrate the first resistance at position 19 844 points, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at position 19 951 points.
Technically, the index on the trading session today, Wednesday (11/11) 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 19 725 and 19 675 19800. If it fails in, then the next index is expected to tend to retest the support level of 19650 and continued up to the possibility of being in the 19600 area.
USDJPY Still Surviving at the Top
Dollar moves within a narrow range against the yen in the past two days, but still able to hold above the 123.00 level, and at the highest level of three months. The lack of significant economic data released from the US to make market participants are reluctant to put up a large position, while awaiting the comments of US Federal Reserve officials, including the chairwomen on Thursday.
Data released from Japan showed surplus current account amounted to ¥ 1.47 trillion in September, compared to last year amounted to ¥ 978 billion. Japan’s current account has posted a surplus in 15 months in a row.
After US employment data pushed the dollar to strengthen sharply, market participants are now waiting for clarity when interest rates rise. Chairwomen The Fed, Janet Yellen, would be a concern after last week said a rate hike in December will depend on the release of US economic data. Previous comments from Chicago Fed President Charles Evans today will be a concern. Evans, who is a member of the Federal Open Market Committee is historically famous for being dovish.
Technically, the trading session today, Wednesday (11/11), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 122.40 and 121.80 maximum. Meanwhile, if the Yen is able to break and hold above 123.05, then another alternative scenario the Yen chance to test the resistance at 123.25 and 123.75 area.
Stable gold, Bias Still Bearish
Gold prices ended the US trading session with unchanged and the market saw consolidation chart after selling pressure recently strong.
Asta Mahadana Futures analyst or Mahadana Online saw some short covering in the futures market and little bargain in the cash market that emerged earlier this week despite the bearish conditions still dominate.
Reports overnight said physical demand is increasing in India, the second largest gold consumer in the world. The festival season in India has started, where the residents there typically buy gold. This news limiting selling pressure in the gold market today.
Key outside markets on Tuesday is the index the stronger US dollar and bullish dollar still seems strong. Meanwhile, crude oil prices slightly higher but still dominates the bearish condition overall.
Fed rate hike for the first time in nine years, is very likely to occur in December, following a strong jobs report on Friday. The actors in thinking there is a 70% chance the Fed will make a rate hike in December. This idea would make the dollar index and gold stocks to bullish while bearish.
Many market players want the Fed soon make a rate hike so that they could stop with these issues and can focus on other things.
Is no economic data released from China on Tuesday. China’s consumer price index rose 1.3% in October, year-on-year, which is down from the 1.6% rise in September. This report makes market participants expect there will be more economic stimulus from the central bank of China.
Technically, gold in today’s trading session on Wednesday (11/11) 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 1084.10 and re-test the maximum level of 1079.25. However, if the price of gold is able to break and hold above 1089.20, the predicted gold prices could potentially test Resistance ie, 1092.40 and 1097.72.
