The Nikkei Continue Positive
At the end of trading on the Japanese stock market yesterday, the Nikkei index moved positively, closed up 236.94 points or 1.22% to 19630.63. Nikkei index positive reinforcement pushed Wall Street and the weakening of the Yen.
Stock Market Wall Street closed up on trade with rising oil prices due to geopolitical concerns as a result of terrorist attacks in Paris last Friday could disrupt the world’s oil supply. Dow Jones closed up 1.38%, the S & P 500 closed up 1.49%, and the Nasdaq closed up 1.15%. Strengthening of the US stock exchanges have inspired Japan to strengthen.
While the Yen is still in a weakened movement. Monitored the movement of the forex market this afternoon, USDJPY exchange rate of the currency pair in a position rose 0.16% to 123.38. This means that the yen weakened against the US dollar.
A weaker yen also make export-oriented stocks rose. Shares of Toyota Motor led gains among automakers, rose 1.8 percent, while industrial robot maker Fanuc rose 2.9 percent.
Investors also took the opportunity to buy stocks that fell yesterday because of declining oil prices, which make these stocks rose yesterday. Inpex rose nearly 2 percent, while stocks of Showa Shell Sekiyu and JX Holdings climbed each of more than 3 percent.
For airline stocks also rose. Shares of Japan Airlines and All Nippon Airways Holdings rose respectively 0.6 percent and 0.3 percent.
While it shares the electric wire maker, Fujikura became the top gainer, jumped 9 percent after Nomura Securities raised its rating on the stock to ‘buy’ from hold or neutral position.
Technically, the index on the trading session today, Wednesday (18/11) 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 level of support in advance ie 19 725 and 19650. If it fails at 19795, then the next index is expected to tend to retest the resistance level that is 19 825 and continued until the possibilities are in the area 19 875.
Yen Strengthens Thin
The movement of the currency market on Wednesday (18/11), observed yen strengthened slightly against the US dollar as demand for the greenback rose after US inflation steady growth in October.
Ongoing trade in the Asian session, the pair USDJPY weakened 0:04% to trade at 123.39. As against other major currencies, EURJPY pair of flats observed in the level of 131.39 and GBPJPY weakened level of 0.02% at 187.75.
Increased demand experienced by the US dollar came after a data released by the Bureau of Labor Statistics states that US consumer inflation rose by 0.2% in October after falling 0.2% in September. As for the core consumer inflation has increased by 0.2% in October.
Slowing US industrial output recorded a decline of 0.2% in October also seen not able to provide significant pressure for the greenback to move weakened against other currencies.
In the US housing market reports have indicated a decline, where a data released by the NAHB says that Indes housing market has declined by a seasonally adjusted to 62 in November from 65 in October.
Thus, the growth of stable inflation in the US has managed to convince the market that the Fed will soon raise US interest rates in December.
Technically, today’s trading session on Wednesday (18/11), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimal resistance at 124.00 and 124.60 maximum. Meanwhile, if the Yen could not break below 123.40 and then survive another alternative scenario the Yen likely to test support in 123.00 and 122.50 area.
Fed Interest Rate Outlook Potentially Weight Gold
Gold prices slipped on the previous day, returned to close to the lowest level in six years as a stronger dollar and stock indices rebounded from losses associated with the attack in Paris on Friday.
The precious metal earlier touched its highest level in more than a week on Monday at $ 1,097.90 / onz after the attack in Paris triggered safe-haven demand among investors, but it failed to sustain gains in gold prices.
Spot gold prices fell by 1.1% at $ 1.070 / onz, while the value of US gold futures contract for December ended down $ 15 / onz at $ 1,068.60.
Gold slips to penetrate to the bottom lows last week at $ 1,1074.26 / onz, which is the lowest level since February 2010, under pressure from expectations that the Federal Reserve is on track to Raise Their first interest rate in nearly a decade.
Expectations have been raised the opportunity cost of owning gold is a non-yielding assets while the dollar strengthens.
Data showed that US consumer prices rose in October after two months of unsuccessful approaches Fed expectations.
Technically, gold in today’s trading session on Wednesday (18/11) 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 1061.10 and re-test the maximum level of 1055.80. However, if the price of gold is able to break and hold above 1066.50, the predicted gold prices could potentially test Resistance ie, 1069.40 and 1065.72.
