Yen Still Sustains Nikkei Performance
Nikkei up after his yen is still struggling near the weakest level 7 years against the US dollar make investors remain optimistic about the outlook for Japanese exporters’ earnings improvement. USDJPY traded 119.17 in early Asian session; near the weakest level 7 years achieved overnight.
If the weakening of the yen continues then this can help improve the competitiveness of Japanese exporters in the international market. Nikkei futures rose 0.51% and is now trading at 17 760.
However, investors appear reluctant to push up the index is too high ahead of the publication of the Chinese service sector activity data that will be released this morning. Beijing and HSBC each will release the Chinese service sector index for November and this can give you further instructions on China’s economy, one of Japan’s major trading partners. Investors seemed quite concerned with the continued slowdown in the Chinese economy in the last quarter of 2014 after data earlier in the week showed reduced activity of the manufacturing sector 2 largest economy in the world.
Technically, the index on the trading session today, Wednesday (03/11) likely to weaken, test 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17800 and 17750. If it fails in 17845, we then estimated the index tends to retest the resistance level of 17870 and continued until the possibilities are in the area of 17 930.
Depressed Pounds Sterling Construction Data Post
Trading foreign exchange on Tuesday (2/12), pounds naturally observed decline against the greenback after the release of UK construction activity data, which dropped in November.
The course of trading in the European session, GBPUSD weakened 0:25% in the level of 1.5692 where the pair was observed level of 1.5689 to a session low of 1.5743 level daily and daily highs for the session.
The pound looks under pressure down when an official report released by Markit has stated that the UK construction PMI has decreased, to a seasonally adjusted 59.4 in November, from 61.4 in October.
Meanwhile, the market’s attention is being drawn to the comments from Federal Reserve Bank President Janet Yellen, who is scheduled to be released at 20:30 Jakarta time.
The movement for the pound could naturally rise when the comments were submitted by the Governor of the Fed is “dovish”, but on the contrary, if the statement is “hawkish” then chances weakening of sterling could happen, given the comments “hawkish” more pressure to a healthy economic growth and it will push the US dollar moved higher.
Technically, the trading session today, Wednesday (03/11), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.5600 and 1.5550 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.5646, then the other alternative scenario that Pound chance to test resistance in 1.5675 and 1.5730 area.
Dollar Rally, Gold Return to bottom $ 1,200
The strengthening of the dollar against other major currencies on Tuesday weighed on gold and precious metals dragged back down to $ 1,200. The strengthening dollar makes dollar-denominated commodities such as gold becomes less attractive due to become more expensive for holders of currencies other than the dollar. On Monday, gold rebounded and rose nearly 4% following the credit downgrade of Japan.
Gold on Tuesday to close at $ 1,198.95 per troy ounce, with daily highs and lows $ 1,212.79 $ 1,191.81.
Gold rose sharply in trading Monday triggered an increase in safe-haven assets as a result of Japan’s credit rating downgrade and the weakening dollar. Other factors that support the strengthening of the gold is the easing of import restrictions by the government of India, and bargain hunting and short covering investors. Moody’s lowered the credit rating of Aa3 Japan into A1, the decline was the first of the major rating agencies since 2012. The last time Moody’s lowered the credit rating of Japan in 2011.
Technically, gold trading session today, Wednesday (03/11) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1205.10 and re-test the maximum level of 1210.87. However, if the price of gold was unable to break and stays below 1200.70 then estimated the price of gold could potentially test the 1198.78 and 1193.40 Support.
