Distressed Impact Nikkei
The Nikkei closed down -0.94 percent, or -155.84 points on 16,498.76yang triggered fears that a strong yen will continue.
Declining investor expectations that Japan may act to weaken its currency after a warning from the United States against the intervention.
Comments from Japanese Finance Minister Taro Aso, who said that Japan has no intention to devalue the yen sharply and consistently.
Strengthening yen dimmed profit prospects for many exporters.
Shares of home appliance and electronics company Panasonic Corp. declined, while the tire company Bridgestone Corp. shares fell lower.
The Japanese automaker, which is heavily dependent on export sales for profit, is also lower.
Toyota Motor Corp. and Mazda Motor Corp. declined.
Analyst estimates for today’s trading, the Nikkei index will weaken sentiment strengthening Yen.
Technically,
Resistance: 16830 16900 16 970 High / Low: 16770/16460
Support: 16700 16610 16 460 Closed Price: 16750
Comment: For intraday trade today suggest Sell 16800; stop loss at the level of 16855; the target at the level of 16510.
Euro Weakens To Lowest Level
EURUSD plummeted, down to the lowest level in the last two months due to poor economic data from the euro zone.
On the other hand, rising expectations of interest rate hikes in the US continues to maintain the performance of the dollar.
ZEW institute reported German economic sentiment fell to 6.4 in May from 11.2 the previous month.
Based on the respondents viewed that the uncertainty will result British referendum June 23, the reason for the decline in economic sentiment.
Expectations of a rate hike in June or July to increase after the release of FOMC minutes last week, and statements optimistic Fed officials.
Philadelphia Fed President Patrick Harker, said the Federal Reserve should raise interest rates in June, unless the economic data showed a decline.
Technically,
Resistance: 1.1180 1.1230 1.1280 High / Low: 1.1139 / 1.1137
Support: 1.1100 1.1060 1.1010 Running Price: 1.1138
Comment: For intraday trade today suggest Buy at the level of 1.1075; stop loss at the level of 1.1040; targets 1.1173.
Gold Prices Fell To The Lowest
Gold prices fell to their lowest level in more than five weeks due to hawkish comments from Federal Reserve officials that made the US dollar rose to a two-month high against a basket of currencies.
Prospects of an early rate hike, as indicated by the minutes of the Fed meeting released last week, and the strengthening of the dollar has pushed gold down more than 4 percent so far in May, put on track for its biggest monthly decline since November.
Senior Fed officials said that interest rates were kept too low for too long could cause financial instability, and that the US central bank will resume rate hikes next year.
Fed policy makers are scheduled to speak this week and is expected to discuss the prospect of rate hikes back in a few months.
Fed Chair Janet Yellen will be in the event the panel organized by Harvard University on Friday.
Technically,
Resistance: 1228.10 1230.60 1233.10 High / Low: 1227.80 / 1226.50
Support: 1224.70 1222.00 1219.20 Running Price: 1226.70
Comment: For intraday trade today suggest Buy 1222.50; stop loss at the level of 1220.00; the target at the level of 1232.50.
