Nikkei Opened Negative
Japan’s Nikkei Stock Index in early trading last week at the opening on Monday (25/04) negative opened, when it was observed down -86.80 points or -0.49 percent at 17485.69. The weakening of the Nikkei with caution investors await BOJ meeting and the yen’s rise.
A weaker Nikkei this morning triggered by Investors locked in profits after the index jumped to 11.5 weeks after reports the Bank of Japan will consider easing yet another step in a two-day policy review that ends on Thursday.
But some investors still believe the central bank may opt to keep interest rates as it assesses the impact of the negative interest rate policy run on 29 January. A semi-annual report on the country’s banking system was issued on Friday by the central bank said the policy has caused some disruption in the flow of funds and will depress profits for the current financial institution.
Underlying sentiment, Prime Minister Shinzo Abe on Sunday ordered his government to compile an extra budget package to finance the reconstruction of the earthquake that recently struck the Kumamoto prefecture in southwestern Japan, with the aim of putting it into effect on June 1.
In trading this morning observed yen rose against the US dollar. USDJPY currency pair is down -0.43 percent at 111.31.
Observed shares of major Japanese exporters were mixed, with Toyota shares rose 1.32 percent, Honda shares rose 0.76 percent and Sony shares fell 4.06 percent. Usually the strength of the yen negative for exporters because it will suppress their overseas profits when converted into local currency.
Mitsubishi Motors shares fell 2.58 percent on Monday, after falling last week on news that the fuel economy test data to create more favorable level of visible emissions. At an annual pace of Mitsubishi shares fell 50.39 percent.
As for the Nikkei index futures tracked down -80 points or -0.46% at 17.490, down compared to the previous closing at 17.570.
Technically,
Resistance: 17550 17610 17700 High / Low: 17700/17455
Support: 17410 17340 17 280 Running Price: 17495
Comment: For intraday trade today suggest Buy at 17400 stop and reversal if break below 17350 level targets at the level of 17650 and reversal targets 17250.
USD / JPY: Profit Taking Before the Big Event
USD / JPY weaker in the session with the Tokyo Nikkei 225 index fell -0.2% and slightly negative after closing vary on Wall Street last Friday.
Last week, there was a large increase for bulls USD / JPY when the price moves up from 110.26 to several pips is not far from the level of 112 following the BoJ’s announcement that policy makers have discussed the negative interest rate loans to financial institutions and other interest rate cuts.
For the next week, traders may be cautious because we are heading major risk event in the BoJ and the FOMC. The main theme is not so much for the Fed right now, which is not expected to act this week. We saw some profit-taking here after a surge Friday down to the 20-hour SMA.
Technically,
Resistance: 111.70 112.10 112.53 High / Low: 111.58 / 111.30
Support: 110.15 110.60 111.00 Running Price: 111.33
Comment: For intraday trade today suggest Sell at 111.50 stop loss at the level of 111.75 the target at the level of 110.50.
Oil Prices Lower On Profits
Oil prices lower in Asian trade Monday morning as traders took profits after last week’s strong rally on signs that the global flood that might be reduced.
“Although the oil market is still the oversupply through the first half of 2016, we expect supply and demand to return to balance in the second half of the year. As inventories start to decline, this should push prices back to the marginal cost of production,” said Neil Beveridge, senior analyst at Bernstein.
Nymex fell 40 cents to $ 43.33 per barrel, Brent fell 35 cents to $ 44.76 per barrel.
Technically,
Resistance: 43.50 43.90 44.30 High / Low: 43.54 / 43.10
Support: 43.00 42.50 42.00 Running Price: 43.11
Comment: For intraday trade today suggest Sell at 43.50 stop and reversal during a break above the 43.80 level targets at the level of 42.40 and target of reversal at the level of 44.60.
