Nikkei Continue Strengthening in Early Week
Japanese stocks, the Nikkei, trying to continue strengthening at the beginning of this week (25/1), after rallying nearly 6% on Friday, and out of the bear market. Expectations of additional stimulus in Europe, higher oil prices and a weaker yen to be a factor behind the Nikkei rallied on Friday.
While today, data released from Japan showed a decline in exports by 8% in December, becoming the biggest drop since September 2012. Japan’s exports have shown a decline in three consecutive months. While imports slumped 18%, and the trade balance into a surplus of ¥ 140.2 billion.
Bank of Japan monetary meeting held on Friday will be the focus this week, the BoJ is expected to lower the inflation projection for the fiscal year that started in April.
Technically,
Resistance: 17020 17100 17 150 High / Low: 17230/16905
Support: 16900 16820 16650 Running Price: 16 945
Comment: To intraday trade today suggest Sell at the level of 16 972 stop loss at the level of the target at the level of 16 712 17023.
Yen Gains Despite The US dollar Dominates
Yen opened the Asian session trade with the strengthening against the US dollar on Monday (25/1). Although last week the greenback dominate.
USDJPY fell -0.28% to 118.58. Investors remain cautious, despite the fact that the yuan stable ahead of the Chinese New Year. The price of oil became the main theme lately and the market is now starting to adjust to what is visible.
Of the BoJ meeting will be closely monitored regarding recent policy stimulus. In our view, deteriorating inflation and less concern over the weakness of Japan’s economic outlook.
Technically,
Resistance: 118.90 119.40 119.53 High / Low: 118.77 / 118.42
Support: 118.00 117.60 117.00 Running Price: 118.54
Comment: To intraday trade today suggest at level 118.73 Sell 119.05 stop loss at the level of the target at the level of 117.65.
Gold Price Blocked Increase
Gold prices fell at the close of trading on Saturday after the instructions of the European Central Bank monetary stimulus weighed on the euro and push the stock market up high.
Likewise, the price of crude oil that previously had fallen to 12-year lows, closing jumped 9 percent on Friday with the rising demand for heating oil in the coming winter, plus a short covering market participants.
Strengthening stock markets and crude oil is give peace a global market that suppress demand for gold as a safe haven asset.
Spot gold price of gold fell 0.4 percent to $ 1,096.36 per ounce. While the price of US gold futures for February delivery closed down $ 1.90, or 0.2 percent, at $ 1,096.30 per ounce. The metal rose to a two-month high at $ 1,112 last week due to slipping equity markets and crude oil.
ECB President Mario Draghi said on Thursday that the weakening of the growth outlook and inflation will force banks to review the policy stance in March, a strong signal that easing could come within a few months.
Draghi’s comments lifted the dollar rose 0.6 percent euro and spurred a rally in global stock markets.
Even down at the end of this week, gold ended the week with an increase of about 0.8%. Gold prices have benefited from the aversion to risk that suppress the stock market and crude oil this month, despite the slow physical demand from major consumer China and India.
Platinum prices meanwhile rose 1.5 percent to $ 829.23 an ounce, rebounding from a seven-year low of $ 806.31 per ounce in the previous session. Palladium prices rose 0.1 percent to $ 499.00 per ounce. While the price of silver declined 0.3 percent to $ 14.02 per ounce.
Technically,
Resistance: 1100.10 1102.60 1104.40 High / Low: 1099.30 / 1097.20
Support: 1096.70 1093.00 1090.10 Running Price: 1098.50
Comment: To intraday trade today suggest Buy at level 1093.54 1091.05 stop loss at the level of the target at the level of 1103.52.
