Nikkei Continues Pressure
Started trading the Japanese stock market on Monday morning (25/5), opened with the Nikkei index continued positive trend in the previous seven trading sessions and reached the highest level since January 2001. The weakening of the Japanese yen at the end of the US trading session at the end of last week that continues to be strengthening the driving shares of exporters.
Yen increasingly depressed by the trade balance data, data import and export of Japan for the month of April which overall showed a significant decrease from the previous release. Shares of exporters who become boosters such as Daikin Industries opened stock jumped 0.71%, Kawasaki Kisen shares that shot 0.82%, shares of Kawasaki Heavy Industries soared 0.69%, Mitsubishi Heavy Industries, which opened jumping 1:01%, Panasonic shares shot 0.65% , shares of Suzuki Motor which rose 0.56%, Toshiba shares soaring 1.38%.
The movement of Nikkei index looks back on this morning opened 105.74 points, or 0:52% that became 20370.15 points from the previous closing position at 20264.41 points and reached the highest position previously traded at 20278.31 points da previous low at 20130.84 points.
But slightly different from the movement of Nikkei index futures this morning which seemed to open slightly lower by 20 points or 0:10% being 20 360 points from the previous closing position at 20 380 points to reach the highest position previously traded at 20 285 points and the previous low at 20 135 points.
Based on the closing traded before, then Vibiz Analyst Research Center estimates that the movement of Nikkei index today will still be mencaoba penetrated the first resistance at 20 235 points with MA5 on BB10 daily, if the movement has managed to penetrate the first resistance then expected to try to penetrate the next resistance at 20,400 points with MA5 on BB10 daily.
If the movement of the index reversed course to weaken, it is expected to try to penetrate the first support at 20 220 points with MA5 on BB10 daily, if the first support is penetrated then expected to try to penetrate the next support at 20 140 points by the middle MA5 BB10 H4.
Technically, the index on the trading session today, Monday (25/05) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 20475 and 20540. If it fails at 20 415, then the next index is expected to tend to retest the support level that is 20 380 and continued until the possibilities are in the area of 20 325.
In the morning session, Yen Weakens Against US Dollar
The movement of the currency market on Monday (25/5), the yen is seen having a little weaker against the US dollar ahead of the release of Japanese economic reports this afternoon.
Ongoing trade in the Asian session, the USDJPY rose slightly 0.01% to 121.57 where the pair was seen moving touched a session low 121.49 to 121.60 levels daily and daily highs for the session.
Yen are weaker against the US dollar ahead of the release of the trade balance report. While trading on this day tend to look deserted given region of Europe and America were undergoing a national holiday.
Meanwhile, in line with Japan’s economic reports this afternoon, a survey of economists had forecast that Japan’s trade balance surplus will be narrowed, becoming -0.38T.
In line with the report, the yen has the potential to continue weakening against the US dollar may occur. However, if the report of the Japanese economy is improving, it is a natural opportunity yen strengthening against the greenback.
Technically, today’s trading session on Monday (25/05), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 122.40 minimum and maximum 123.25. Meanwhile, if the Yen could not break below 121.66 and then survive another alternative scenario will be the Yen likely to test support in 121.00 and 120.10 area.
Gold Weakens of US Monetary Policy
Gold ended down moderately, posted its biggest weekly decline in four weeks, as the dollar rebounded after Federal Reserve Governor Janet Yellen expects a rate hike this year. According to Yellen, the central bank will raise interest rates this year to accompany the US economic recovery from the poor first quarter and barriers to domestic and international began to decrease.
The dollar extended gains after Yellen’s speech, having previously gained thanks to a surprise rise in US core CPI in April. Despite rising inflation outlook could boost demand for gold, many gold traders are worried about the increase in consumer prices, which is still far from the target of 2% Fed, will open increasing the chances of a rate hike.
Gold trading almost flat, ending at the level of $ 1206.00 per troy ounce, near daily lows $ 1,201.45 to $ 1,214.78 daily highs.
Technically, gold in today’s trading session on Monday (25/05) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1200.10 and re-test the maximum level of 1194.25. However, if the price of gold is able to break and hold above 1204.60, the estimated price of gold could potentially test the Resistance 1206.10 and 1210.25.
