Weak Yen, the Nikkei Reaches Top Seven Week
End the first week of March trading (6/3), the Japanese stock market managed to continue strengthening that has occurred from the previous trading even managed to reach the highest reinforcement 7 weeks. Strengthening trade Wall Street and the US dollar against the Japanese Yen into a strong boost in early trading today.
Japanese yen against the US dollar at the end of the US trading session lower by 45 pips or 0:38 which is 120.14% of the position opening at 119.69 to reach the highest at 120.41 and the lowest at 119.63 after reporting Challenger Jobs Cuts US.
Japanese automotive sector stocks gain on positive sentiment weakening Japanese yen as Hino Motors rose significantly by 1:51%, Honda Motor rose significantly by 1:10%, Kawasaki Kisen gained at 0:30%, and Toyota Motor gained 1.25% significant. In addition to automotive stocks, blue-tier stocks also looks like the Canon appreciates the significance ebesar gained 0.71%, Fujitsu rose significantly by 1.61%, significantly higher Nikkon at 1:30%, Panasonic rose significantly by 1:30%, Sharp rose significantly by 0.85%, Recruit Holdings Fell rose significantly by 0.70% who responded to the proposal that the company will memberli German restaurant reservation service provider Quandoo Gmbh worth $ 219 million.
Nikkei index opened higher this morning by 62.61 points or 0:33% which became 18814.85 points from its previous close at 18751.84 position to reach the highest point at 18767.50 points and the previous previous low at 18655.36 points. Neither the movement of Nikkei index futures also opened higher by 85 points or 0:45% which is 18 925 points from the previous closing position at 18,840 points to reach the previous highs at 18.9255 points and previous low at 18 705 points.
Based on the previous closing, then Analyst Vibiz Research Center estimates that the movement of the Nikkei index this weekend will move in positive territory by trying to break through resistance at 18,835 points with the middle 10 MA5 time bolinger H4, Bolinger on 10 MA5 time H1, if the movement of the index is able to penetrate the resistance at 18,835 points, then it is estimated that the movement of the index will try to penetrate the next resistance at 18 915 points.
If the movement of the Nikkei index was not able to penetrate the resistance at 18,835 points, then the estimate that the movement of the Nikkei index will try to penetrate the support closest to the middle bolinger 18 655 points with 10 MA5 time daily, if the movement of the index is able to penetrate the support at 18 655 points, then it is estimated that the movement of the Nikkei index will trying to penetrate the next support at 18 554 points.
Technically, the index on the trading session today, Friday (06/03) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level of 18 980 and 18 925 19050. If you fail, then the next index is expected to tend to retest the support level that is 18 875 and continued until the possibilities are in the area of 18 835.
Euro Drops Deeper In Wall Street Session
The euro fell to its weakest level in 11 ½ year high against the US dollar and the nadir of 7 years against the pound after European Central Bank Governor Mario Draghi expansion opportunity pass stimulus plan September 2016.
The single currency slumped to approach the psychological level of 1.1000, while the euro zone bond yields mostly lower with the exception of the German bond yields on 2-year tenor, which boosted above the level of the ECB deposit rate -0.2% after Draghi said he would not take part include the rate of bond purchases under .
ECB’s Draghi also confirmed it will make a purchase assets of 60 billion euros at least until September 2016 and also said it would continue the program of QE if needed although the planned ending in 2016. This statement indicates that the ECB will continue stimulus programs committed to at least get the desired results and impact negatively on the exchange rate.
Technically, the trading session today, Friday (06/03), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.0975 and 1.0910 maximum. Meanwhile, if the Euro is able to break and hold above 1.1025, then the other alternative scenario that Euro chance to test resistance in 1.1060 and 1.1100 area.
Gold Prices Still Sluggish for 4 Consecutive Session
The price of gold at the end of trading Friday morning still continue to decline for four consecutive sessions (6/3). Gold prices in the doldrums in the middle exchange rate of the dollar continued to rise against its rivals.
Slowing down the price of gold is also caused by reduced short covering after the ECB announced that it will raise its inflation predictions in 2016. On Thursday night announcement that the European Central Bank kept its key rate at its lowest level in history. Projected inflation in 2016 was raised to 1.5 percent from 1.3 percent. Meanwhile inflation in 2017 was pegged at 1.8 percent.
The dollar rose achieve the highest position since September 2003 against rivals that are reflected in the dollar index. The increase in the dollar exchange rate is also lower the interest in dollar-priced commodities including gold.
Spot gold prices at the end of trading early this morning closed at 1198.05 dollars per troy ounce. Spot gold prices declined by 2.00 dollars, equivalent to 0.15 per cent compared to the previous closing.
Comex gold futures prices at the close of trading early this morning also appear to have decreased. Gold futures for April contract expires at the position of 1196.20 dollars per troy ounce, weakened by 0.4 percent.
Analyst estimates that LLG spot gold price movements will tend to rise limited to trading in Asia today. The price of gold is difficult to move the rebound in the dollar exchange rate rise pretty solid due to the potential increase in the Fed’s benchmark rate.
In this har day trading price of gold could potentially test the resistance level at position 1211 dollars per troy ounce. If successfully penetrated the price will continue to rise again to the position in 1220 dollars. Meanwhile, if there is movement further weakened the price will test the support level at the position in 1190 dollars. If successfully penetrated the price will continue to rise to the position in 1180 dollars.
Technically, gold in today’s trading session on Friday (06/03) 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 Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1195.33 and re-test the maximum level of 1190.73. However, if the price of gold is able to break and hold above 1198.80, the estimated price of gold could potentially test the 1200.40 and 1202.72 resistance.
