Nikkei Verdant In Early Session Over Wall Street Rebound
Japanese stocks rally at the beginning of Thursday’s session, because the index rebound on Wall Street overnight, the yen that are steady and the rise of some domestic stocks.
Domestic stocks rose on today is, East Japan Railway Co. which rose 1.4%, Nippon Telegraph & Telephone Corp., up 1.3%, and shares the Tokyo Dome Corp. soared 1.9%, while that for the shares of exporters also posted gains, as shares of Japan Tobacco Inc. which rose 2.8%, Toyota Motor Corp. shares rally 1.5% and Murata Manufacturing Co. rose by 2.4%.
Strengthening the transport sector also scored early in the session as Brent oil moving at a low level in early trading, with shares of Japan Airline Co. which rallied 2.6%, shares ANA Holdings Inc. rose 2.3% and Mitsui OSKLines Ltd which rose 2%.
The Nikkei index rose by 200 points, or 1:18% to 17.150 at 8:38 pm.
Technically, the index on the trading session today, Thursday (08/01) 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 17 215 and 17 165 17260. If you fail, then the next index is expected to tend to reexamine the level of support that is 17135 and continued until the possibilities are in the area of 17 080.
Euro Depressed in ECB and The Fed Outlook
Euro maintain weaken for a fourth day against the dollar on Thursday as data showed the possibility of the European Central Bank increases the amount of stimulus this month, when the Federal Reserve moves closer to Raise interest rates.
Eurozone currency yesterday fell to its lowest level in nine years as data showed consumer prices in the region fell for the first time since 2009, it strengthens the argument that the ECB will undergo a government bond purchases. The dollar yesterday rose to a three-week high against the yen as the minutes from the latest Fed meeting support bets for higher interest rates this year. Aussie rebounds from near the lowest level against the kiwi after a surprising rise in the number of building approvals.
Naohiro Nomoto, an analyst at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said that the inflation data has worsened the performance of the euro, I do not see any exception to the ECB for not acting in January. ”
The euro is currently little changed at $ 1.1825 at 9:03 pm from yesterday, when the single currency touched $ 1.1802 level, it is the weakest since January 2006. The decline for fifth day will be a weakening of the longest streak since May.
Technically, the trading session today, Thursday (08/01), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.1760 and 1.1710 maximum. Meanwhile, if the Euro is able to break and hold above 1.1819, then the other alternative scenario that Euro chance to test resistance in 1.1840 and 1.1880 area.
Gold Trim Gain After FOMC Minutes
Gold scored decline on Wednesday, 3 daily stop the rally, after the Federal Reserve released the minutes of its meeting in mid-December. The US central bank review the amount of data which showed recovery in the US economy can survive in the midst of a global slowdown, the recession that threatens Japan and Europe and a slowdown in a number of developing countries, according to minutes.
However, the inflation rate is still slow, and the worsening outlook for the euro zone and Japan’s economy, the Fed is difficult to find the right language, recognizes the recovery in the US while promising not the right time to raise interest rates.
Immediate resistance to the current gold is estimated at the level of $ 1.220, while the closing level above that area would change the focus to a higher level with the target at $ 1.250, according to technical analyst at ScotiaMocatta. “Gold prices recovered to above the level of $ 1.200 over the past kecemasna about Greece in the eurozone triggered safe-haven buying,” said analyst Carsten Menke Julius Baer. “Longer-term Outlook still continuing economic recovery in the US fueled rate hike the first time in the second half of this year.
Gold scored decline on Wednesday, 3 daily stop the rally, after the Federal Reserve released the minutes of its meeting in mid-December. The US central bank review the amount of data which showed recovery in the US economy can survive in the midst of a global slowdown, the recession that threatens Japan and Europe and a slowdown in a number of developing countries, according to minutes. However, the inflation rate is still slow, and the worsening outlook for the euro zone and Japan’s economy, the Fed is difficult to find the right language, recognizes the recovery in the US while promising not the right time to raise interest rates.
Immediate resistance to the current gold is estimated at the level of $ 1.220, while the closing level above that area would change the focus to a higher level with the target at $ 1.250, according to technical analyst at ScotiaMocatta. “Gold prices recovered to above the level of $ 1.200 over the past kecemasna about Greece in the eurozone triggered safe-haven buying,” said analyst Carsten Menke Julius Baer. “Longer-term Outlook still continuing economic recovery in the US fueled rate hike the first time in the second half of this year.”
Technically, gold in today’s trading session on Thursday (08/01) 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 1205.33 and re-test the maximum level of 1200.10. However, if the price of gold is able to break and hold above 1210.50, the estimated price of gold could potentially test the 1213.40 and 1218.10 resistance.
