Nikkei Still Not Able to Rise
The Nikkei closed down 367 points, or 1.9 percent, at 18 986, with investors still looking at the stimulus by the Bank of Japan (BOJ).
Japan’s stock moves up and down, rose erasing losses in early trading after the Bank of Japan said it would increase purchases of exchange-traded funds (ETF), but eventually retreated back into negative territory.
BOJ carry out monetary policy unchanged as expected, but the central bank announced a new program to buy the ETF at an annual rate of 300 billion yen ($ 2.45 billion). This is in addition to the purchase program that increases the bank ETF ETF holdings at an annual rate of about 3 trillion yen.
Meanwhile, crude oil prices weakened in Asian trading session is still negative sentiment weakening the Nikkei index. The weakening crude oil prices continued in sessions of Commerce Asia. WTI crude oil futures prices fell 18 cents to $ 34.77 per barrel. The price of Brent crude fell 19 cents to $ 36.87 per barrel.
Oil stocks responded negatively weakening crude oil. Japan’s Inpex and Japan Petroleum masig were down 2.6 percent and 2.46 percent at the close of the market
On stock trading, shares of Toshiba still in focus, with shares down 2.92 percent, after reports that the company is considering a spin-off of the flash memory business to raise funds for restructuring.
As for Nikkei futures were also observed in the negative zone, down 100 points or 0.53% at 18.850, down from the previous trading at 18.950.
On Monday is the release of economic data All Industry Activity Index (MoM) in October, where the previous results in the position of -0.2%, there is no consensus forecast data.
Technically, the index on the trading session today, Monday (21/12) 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 18560 and 18470. If it fails at 18650, then the next index is expected to tend to retest the resistance level 18700 and continued until the possibilities are in the area 18 780.
Yen Weakening Experiencing Impact From BOJ
The Japanese yen weakened against the US dollar at the beginning of the week, Monday (21/12), as of the BOJ decided to maintain the target of monetary stimulus.
USDJPY rose 0095 to a level of 121.27. BoJ still maintain monetary stimulus worth 80 trillion yen and it is in conformity with the expectations of many analysts. While analysts still argue about when would be the BOJ will add stimulus.
BOJ benchmark interest rate is still maintained at the level of 0:10 per cent in line with expectations, the results of voting 8: 1, but they agreed to extend the maturity of the purchase of Japanese government bonds from 7 years to 12 years.
Technically, the trading session today, Monday (21/12), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 120.70 and 120.00 maximum. Meanwhile, if the Yen is able to break and hold above 121.20, then another alternative scenario the Yen chance to test the resistance at 121.50 and 122.00 area.
Gold Prices Experiencing Pressure From Quiet Trade
The price of gold in Asian trading on Monday (21/12), as investors trade a calm and continue to exert downward pressure on precious metals.
Division of the New York Mercantile Exchange, spot gold for February delivery fell 0.33% to $ 1,066.50 a troy ounce. Next week, trading volume is expected to remain light because of the Christmas holiday and many traders have closed books before the end of the year, reducing liquidity in the market and increase volatility.
On the US data, will release a key report gross domestic product, durable goods orders, home sales and jobless claims in the week. Last week, gold bounced back from the previous session’s two-week low on Friday, boosted by a weak US dollar, the market continued to digest the Federal Reserve’s decision to raise interest rates for the first time in almost a decade.
In a unanimous decision, the Fed raised interest rates for a range of 0.25% to 12:50% range of 0-0.25%. Speaking at a press conference after the announcement, President Governor Janet Yellen vowed that the FOMC in its approach to normalize monetary policy and rising future interest rates will go up gradually depending on the data dependency. In the average projection of the latest FOMC anticipates that the Fed Funds rate will reach 1375% by the end of 2016, the Fed is currently showing will be no increase in levels only twice in 2016, one in June and in December.
Technically, gold in today’s trading session on Monday (21/12) 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 1064.33 and re-test the maximum level of 1059.21. However, if the price of gold is able to break and hold above 1069.30, the predicted gold prices could potentially test Resistance ie, 1071.49 and 1074.53.
