Nikkei Still Being In The Negative Zone
At the end of trading yesterday the Japanese stock market, the Nikkei index ended negative, closed down -122.47 points, or -0.71 percent, at 17041.45. A weaker Nikkei pushed caution investors awaited the results of the BOJ meeting.
Policymakers at the central bank is expected to lower their outlook for inflation for the fiscal year 2016 will begin in April. Bank of Japan policy board members will hold a two-day meeting starting on Thursday.
They consider the decline in commodity prices in Japan can not be avoided because of the falling price of crude oil. Policy makers are expected to lower the inflation outlook for fiscal year 2016 from the current 1.4 percent to about 1 percent.
In late trading, some electronics maker stocks led the market lower. Shares of Murata Manufacturing Co lost 6.6 percent to Y13,620. Shares of Sony Corp fell 5.3 per cent to Y2,378.
While the electronic component maker Alps Electric Co. tumbled 17 per cent to Y2,208 after the company cut its sales and profit forecast for the fiscal year ending in March, citing slower demand in the North American smartphone section.
As for Nikkei index futures also tracked up 80 points or 0.47% at 17.140, down from the previous trading at 17.060.
Today will be released a lot of data related Japanese economic indicators are also the result of the BOJ meeting.
Inflation Rate (YoY) in December indicated in the position of 0.2%, down from the previous 0.3%.
Core Inflation Rate (YoY) in December indicated in the position of 0.1%, the same as the previous result at 0.1%.
Tokyo Core CPI (YoY) in January indicated in the position of 0.1%, the same as the previous result at 0.1%.
Unemployment Rate (YoY) in December indicated in the position of 3.3%, the same as the previous result at 3.3%.
Industrial Production (MoM) in December Prel indicated in the position of -0.3%, up from the previous -0.9%.
Household Spending (YoY) in December indicated in the position of -2.4%, up from the previous -2.9%.
Analyst estimates that the movement in the Nikkei index will further weaken potentially unlimited, responded to the domestic economy are less encouraging.
Technically,
Resistance: 17090 17150 17210 High / Low: 17140/17000
Support: 16950 16800 16 725 Running Price: 17045
Comment: To intraday trade today suggest Sell at the level of 17080 stop loss at the level of 17135 targets at the level of 16810.
Yen Gains After Weakens
A variety of factors depress the valuation of the Yen in early trading on Friday (29/1) with the results of a two-day policy meeting the Bank of Japan (BoJ) became the main focus for today’s trading.
The yen closed slightly lower against the US Dollar on Thursday trading session following the sentiment of risk appetite improved signal based on the strengthening of the US stock market and oil, as well as news of the resignation of Economy Minister of Japan. Whereas the US Dollar itself ended lower against other major currencies after the disappointment of core durable goods orders report for December.
After the surprise resignation of Akira Amari, household expenditure data in December and core inflation in January had already been a negative for the Yen trading. Household spending in Japan at the end of last year fell 4.4% from a year earlier, seemed unaffected by low global oil prices. The core inflation rate is still around not far from zero. Overall, the latest data released by the statistics bureau of Japan, including the unemployment rate sustained at 3.3%, increasing the pressure to disburse the BoJ need additional stimulus to trigger a more stable economic recovery.
Since October last year, the market is calculated Japan’s central bank needs to increase its stimulus program. This insistence is getting stronger especially with the strengthening of the yen since the beginning of the potentially incriminating export activity of the country’s fourth largest economy of the world. However, some economists suspect the increase in stimulus will occur in this year but probably not today because the required inflation figures are worse than today’s report.
Technically,
Resistance: 119.10 119.50 120.10 High / Low: 118.96 / 118.77
Support: 118.50 118.00 117.60 Running Price: 118.87
Comment: To intraday trade today suggest Buy at the level of 118.25 stop loss at the level of 118.00 the target at the level of 119.70.
Gold Price Drops
Gold prices fell in the day yesterday, hit by profit-taking and consolidation after posting three-month high on Wednesday.
However, there is still a bit of traders and investors who continue to support safe-haven gold following the uncertainty in the market.
Global stock markets varies on Thursday, after the FOMC meeting to give a decision no change to interest rates. However, the FOMC statement is considered slightly dovish. Some observers said that the statement was confusing. The statement signaled that the risks to the US economy no longer balanced because of the instability of the financial and stock markets recently. However, the statement did not say directly that the Fed members are worried about the world’s stock market selloff recently. The market quickly moved to other things.
Crude oil prices higher on Thursday after rumors that OPEC will begin to reduce production. Another key market indices weaker US dollar.
Technically,
Resistance: 1116.10 1118.20 1120.90 High / Low: 1115.70 / 1113.40
Support: 1111.00 1107.40 1105.10 Running Price: 1114.10
Comment: To intraday trade today suggest Sell at the level of 1116.50 stop loss at the level of 1119.00 the target at the level of 1106.50.
