Nikkei Optimistic With Japan’s economy
The Nikkei 225 rose as widespread investor optimism after returning from a vacation earlier in the week. Continued weakness in the yen, BOJ easing monetary policy, and changes in pension fund investment allocation Japanese government is expected to maintain the sustainability of the economic recovery in the world’s 3 largest. Although the yen this morning slightly higher but drastic weakening yen in the last two sessions are expected to improve the earnings outlook for Japanese exporters.
Last Friday, the BoJ increased the number of purchases of Japanese government bonds from 50 trillion yen to 80 trillion yen. Further monetary easing from BoJ is expected to keep the cost of bank credit remains low so that Japan can also reduce the cost of financing the Japanese company. On weekends, the GPIF also announced increase in the allocation of investment in local and foreign stocks from each of 12% to 25%. The addition of investment allocation in the local stock GPIF will mean increased demand for shares of Japanese companies so that they can participate in providing a positive catalyst for the index. The Nikkei 225 rose 3.88% and is now trading at 17051 levels.
Technically, the index in the trading session today, Tuesday (04/11) is likely to strengthen, test positive trend. In a bullish hammer formation M15 chart gives an opportunity for the index to move upside. However, the volume is likely to increase, as well as an early indication of a bullish index. In addition, RSI, on the M15 chart, is in the oversold area, cue upside.
It is estimated, the index test the first resistance level of 17000 and 17050. If it fails at 16 955, then the next index is expected to tend to retest the support level of 16900 and followed up the possibility of being in the 16850 area.
Euro Slips Into Low Level Data OF 2 Years On Euro Zone
The euro slid to the lowest level in more than two years against the dollar on Monday, as to disappoint manufacturing data from the Euro zone, damping demand for the single currency.
The euro hit a level of $ 1.2441, it was the lowest level since August 2012, when the currency was consolidating in the range of $ 1.2482, down about 0.34%.
Euro-dollar was likely to find support at 1.2441 levels and resistance at 1.2617, the highest level October 31.
The single currency came under pressure after the research group Markit said that its index of German manufacturing PMI fell to 51.4 in October from a reading of 51.8 the previous month, thwarting expectations for the index in the estimate is unchanged.
Meanwhile, a separate report also showed manufacturing PMI index for the whole euro area has moved down to 50.6 in October from 50.7 in September. Previous Analysts expect the index remained unchanged.
Technically, the trading session today, Tuesday (04/11), the pair euro dollar likely to move in a negative trend.
The weakening of the euro is mainly expected to immediately reexamine the minimum support at 1.2450 and 1.2400 maximum. Meanwhile, if the euro is able to break and hold above 1.2498, then another alternative scenario ie the Euro likely to test resistance in 1.2520 and 1.2570 area.
Appreciation of Greenback Exacerbating Gold Performance
Gold prices slipped to a near four-year lows on Monday as the dollar index soared to its highest level since mid-2010, on speculation that the Federal Reserve will tighten monetary policy earlier than other major central banks.
Appreciation gold greenback has plunged below key support $ 1,180 / oz on Friday, followed by a massive sell-off that hit the lowest level price deliver $ 1,161 / oz. Analysts said bullion will still be under pressure given the very lack of fundamental factors that can trigger a price recovery.
Technically, gold at today’s trading session on Tuesday (04/11) potentially bearish, tested negative trend back, but prone to reversal. The RSI indicator is likely to re-test support channel and towards the oversold area, but the Bollinger Bands which began to widen, thus giving impetus to gold to the upside.
It is estimated that the price of gold immediately prior to test support at least in the area of 1160.50 and re-test the maximum level of 1155.00. However, if the price of gold is able to break and hold above 1166.10 then estimated the price of gold has the potential to test the 1170.10 and 1175.50 Resistance.
