Corrected Nikkei on Yen Rebound
Japanese stock exchange trading on the day on Thursday morning (10/9), the Nikkei index opened corrected looked pretty in action earlier traded rally, which is due to profit-taking in line with the strengthening of the Japanese Yen turned this morning.
In addition, investors participated disappointed by the results of the release of the data is less encouraging, namely the booking data latest machinery in August, which is where it is annual and monthly still show a slowdown, as well as the data of foreign investors into the country, where a decline in deep enough on investment in the form of shares that became – ¥ 986B from the previous week’s releases at – ¥ 630.3B.
Ballast Japanese stock market this morning is the Toshiba shares amounted to -2.47%, the stock J Front Retailing -2.52%, -1.75% stake Sharp, Nissan Motor -1.36%, but there are still shares a top performer as stocks Isuzu Motors 6.86 %, Toyota Motor 6:26%, Honda Motor 6:59%, 7.92% stake in Suzuki Motor, Mitsubishi Motors 5:51%, shares of Denso 10:13% and 10:50% stake TOTO.
The movement of Nikkei this morning observed getting great pressure by 351.87 points, or 1.87%, to 18418.64 points into the closing position at the end of the previous trading at 18770.51 points position and managed to record the highest increase earlier traded at 18770.51 points and the lowest position previously in the position of 17757.40 points.
Similar to the movement of Nikkei index futures this morning, which opened sharply lower at
2:45% or 455 points, to be 18,110 points of closing the position at the end of the previous trading at position 21 565 points and managed to record the highest increase previously traded at 18 730 points and the lowest position before the position of 17 990 points.
Based on the results of the closure at the end of the previous trading, the analyst estimated that the movement of Nikkei index today will turn weaken with penetrate support at first at position 17 920 points with MA5 under BB10 daily, if the movement of the index broke through the first support it is expected to try to penetrate the second support at MA5 position with 17 725 points below the daily BB10.
If the movement of the index managed to turn toward stronger then expected to try to penetrate the first resistance at 18 195 points with MA5 position on BB10 H4, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 18 375 points with MA5 position on BB10 H4.
Technically, the index on the trading session today, Thursday (10/09) likely to weaken, tests 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 of 18000 and 17940. If it fails at 18055, then the next index is expected to tend to retest the resistance level that is 18 080 and continued until the possibilities are in the area 18 130.
Stronger Dollars Against Euro
The dollar strengthened against the yen and the euro at the closing session on Wednesday and remained higher against both currencies despite the decline in Treasury yields to weaken the dollar.
The dollar rose 0.6% against the yen to a level of 120.71 yen late Wednesday in New York. EURUSD euro weakened 0.2% against the dollar to $ 1.1190.
Decline in the US dollar in the afternoon session also gave little expectation that the Federal Reserve policy makers will cancel to raise interest rates the central bank at a meeting next week.
Higher interest rates will increase the return on assets denominated in dollars, making the currency more attractive compared with assets denominated in foreign currencies.
The dollar began to strengthen against the yen on Wednesday after Japanese Prime Minister, Shinzo Abe, vowed to cut corporate taxes. The statement indicates that Japanese policymakers “still trying to help their economy,” said Doug Borthwick, head of foreign exchange at Chapdelaine & Co.
Meanwhile, WSJ Dollar Index, which measures the strength of the dollar against other major currencies, rose 0.2% to 88.83. ICE US dollar index, another measure of the performance of the dollar against six major currencies rival, observed flat at 96.008.
Technically, today’s trading session on Thursday (10/09), the pair Euro-dollar likely to move in a positive trend.
The strengthening Euro is mainly expected to immediately re-examine the minimal resistance at 1.1280 and maximum 1.1330. Meanwhile, if the Euro unable to break and stays below 1.1231 then the other alternative scenario that Euro likely to test support in 1.1200 area and 1.1150.
Gold Down To Lowest Level Four Week
Strengthening exchanges in Asia and Europe as well as pharmaceutics dollars on Wednesday made the gold down to the lowest level in four weeks, however the price movements expected to remain within a narrow range ahead of the Federal Reserve’s monetary meeting next week.
The gold market wills observe carefully the Federal Reserve’s monetary statement on September 17 (US time) on interest rates. Gold earlier benefited from the low interest rates that lower the opportunity cost of gold. An expectation of rising interest rates has lowered the value of gold by 5% this year.
China’s Shanghai Stock Exchange Composite gained 2.3% after China’s Ministry of Finance said it will release fiscal kebijalan “stronger” to stimulate the economy. On the other hand Prime Minister of Japan, Shinzo Abe, said it plans to lower corporate taxes at least 3.3% in the next two years, making Nikkei jumped 7.7%.
But US stocks failed to follow the movement of Asian and European exchanges, making gold successfully cut down. Gold on Wednesday closed trading at $ 1.07,74, with daily highs $ 1125.45, $ 1101.34 and the lowest.
Technically, gold in today’s trading session on Thursday (10/09) 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 1101.10 and re-test the maximum level of 1095.25. However, if the price of gold is able to break and hold above 1106.00, the predicted gold prices could potentially test Resistance ie, 1109.40 and 1114.72.
