Nikkei Moves Sideways Potential Impact of US Rate Hike
The Nikkei ended flat, edging up 0.01 percent, or 1.97 points, at 16,646.66. The Nikkei index moved sideways as a result of the minutes of the US Federal Reserve policy meeting bulla April that boosted the US dollar, so that pressing the strong yen.
Tokyo market’s gains also supported by Japan’s core machinery orders data increased.
The increase is higher Nikkei index also halted the decline in crude oil prices Asian session. Crude oil prices fell, pulled down by rising US crude inventories, a stronger dollar and a surge of production from Iran to Europe and Asia.
Some investors were also cautious ahead of a Group of Seven meeting to be held this week in Japan.
Technically,
Resistance: 16600 16670 16 790 High / Low: 16835/16480
Support: 16450 16400 16 325 Closed Price: 16530
Comment: For intraday trade today suggest Buy 16450; stop and reversal if break below 16400; level targets at the level of 16730 and reversal targets 16300.
Yen Stronger Against Dollars
The yen strengthened against the US dollar in thin trade on Friday morning. As the meeting of the G7 meeting in Sendai, Japan.
The US dollar trimmed gains after the data release of jobless claims decreased by 16,000 to 278,000 from the previous week’s level with a total of 294.000.
Separately, the Federal Reserve Bank of Philadelphia said that its manufacturing index worsened to -1.8 in May from the previous month at -1.6 level. Analysts had expected the index to rise 3.5 in May.
Technically,
Resistance: 110.30 110.73 111.25 High / Low: 109.96 / 109.91
Support: 108.50 109.00 109.50 Running Price: 109.93
Comment: For intraday trade today suggest Sell 110.10; stop loss at the level of 110.35; the target at the level of 109.10.
Gold Fell to The Lowest Level
Gold extended weakens estimating market opportunities when the hubbub of a Fed rate hike in June as well as the US jobless claims report reduced. The precious metal fell more than $ 14 per troy ounce to three-week lows, decreased during the two-session losing streak.
Data on Thursday showed that last week in US jobless claims posted the biggest weekly decline since early February. Data in the US labor market indicates strong to convince officials the central bank to raise interest rates in June.
In addition, the FOMC Vice Chairman William Dudley, in a press conference in New York said the US economy may be strong enough as a reason to raise rates in June or July. The US dollar extended gains against other currencies after comments reported by Dudley and adding pressure gold trade.
Technically,
Resistance: 1259.10 1263.60 1265.40 High / Low: 1257.40 / 1256.10
Support: 1255.70 1253.00 1251.10 Running Price: 1257.30
Comment: For intraday trade today suggest Buy 1254.50; stop loss at the level of 1252.00; the target at the level of 1264.50.
