Nikkei Tripped By Strengthening Yen
Started trading stock exchanges Tokyo Japan at the end of the third week of April (24/4), the Nikkei opened turned weaker than previously traded reinforcement. Japanese yen managed to break from the intense pressure the US dollar at the end of trading last night drives the selling shares of exporters.
The exporter shares are shares of Kawasaki Heavy Industries, which opened lower by 0.32%, stocks opened lower Kawasaki Kisen significantly by 0.61%, Nissan Motor shares closed lower by 0.43%, Panasonic shares opened lower significantly by 0.85%, Sharp stocks opened weaker exhibited significantly amounted to 0.75%, Toshiba shares closed down significantly by 0.85%, as well as Toyota Motor closed down significantly by 0.52%.
The movement of Nikkei index opened lower this morning by 57.78 points or 0:30% which became 20129.87 points from the previous closing position at 20187.65 points to reach the previous highs at 20252.12 points and the previous low at 20116.19 points. Likewise, the movement of Nikkei index futures opened lower this morning by 46 points or 0.23% which is 20 142 points from the previous closing position at 20 188 points to reach the previous highs at 20 252 points and the previous low at 20116 points.
Based on the previous closing, then Analyst Vibiz Research Center estimates that the movement of the Nikkei index today will try to penetrate the support at 20 130 points with MA5 on BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the next support at 20 065 points with MA5 BB10 middle H4.
If the index movement turned toward stronger then expected to try to make up for the resistance at 20,250 points by MA5 on BB10 Daiy, if the index is able to penetrate the resistance movement pertma then expected to try to penetrate the next resistance at 20 350 points with MA5 on BB10 daily.
Technically, the index likely to weaken on the trading session today, Friday (04/24), 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 raise, 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 20010 and 19850. If it fails in 20070, we then estimated the index tends to retest the resistance level of 20100 and continued until the possibility of being in the 20150 area.
Euro Continue Strengthening After US Economic Data
Economic data on eurozone released today could put pressure on the exchange rate of the euro against the dollar, but now the currency of 19 countries rebounded against the dollar after US economic data also released “red”.
Markit report the results of the survey showed business activity index, which includes the manufacturing and service sectors, the euro zone fell to 53.5 in April from March at 54.0. A reading above 50 indicates expansion and below 50 indicates contraction. The business activities of the two economic giants euro zone, Germany and France, reportedly slowed down, but activity in the country and recorded the fastest pace since August 2007. Meanwhile Spain INE reported unemployment rate rose to 23.8% in the first quarter of this year from the last quarter of the year and by 23.7%.
While the US, the Labor Department reported claims for unemployment benefits rose to 295,000 in the week ending 18 April, from 294,000 the previous week. Economists surveyed by MarketWatch had forecast the number of claims as many as 288,000. Another report released by Markit showed manufacturing activity index fell to 54.2 this month, from 55.7 the previous month. Meanwhile, the US Commerce Department showed sales of new homes fell 11.4% at March from a year earlier to 481,000
Technically, the trading session today, Friday (4/24), the Euro-dollar pair a chance to move in the negative trend.
The weakening of the Euro mainly expected soon reexamines the minimum support at 1.0750 and 1.0690 maximum. Meanwhile, if the Euro is able to break and hold above 1.0811, then the other alternative scenario that Euro chance to test resistance in 1.0840 and 1.0900 area.
Weakening US data Profitable Gold
Gold rebounded on Thursday and cut some of the biggest drop in more than a month that is printed on Wednesday, after weak US economic data dampen expectations the Federal Reserve’s interest rate hikes earlier.
US weekly jobless claims data showed an increase that exceeded estimates, while new home sales in March were reported down 11.4%. Markit initial survey also showed manufacturing PMI slipped to 54.2 in April from 55.7 in March. The US dollar also depreciated as a result, making the appeal of commodities denominated in the US currency rebounded.
While in the physical market, Asian demand is expected to weaken with the end of the festival gold purchases in India.
Henceforth, geopolitical factors in Yemen and Greece’s debt problems are unresolved they will provide support for gold prices. Traders will also await the results of the FOMC meeting on April 28 to 29 next.
Technically, gold in today’s trading session on Friday (4/24) 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 1187.10 and re-test the maximum level of 1182.25. However, if the price of gold is able to break and hold above 1192.30, the estimated price of gold could potentially test the 1194.10 and 1196.50 resistance.
