Japan Machinery Orders Gain Back Nikkei
The domestic stock market cherish in early trading Monday morning Japanese (18/5), the Nikkei index opened continue the positive trend at the end of the previous week. Yen turned lower against the US dollar and positive data from the Japanese machinery orders release appears to be a positive driver of the stock market in early trading this morning.
Data released before trading opened Merchinery Order Japan in March, the data shows the rebound, on an annual basis rose 2.6 percent in March from a contraction of 0.4 percent in February.
Amplifier stock exchange this morning by the strengthening yen as stocks opened Canon jumped 0.81%, Daikin Industries which sped shares 1.85%, shares soar 2:33% Hino Motors, Isuzu Motors shares shot 1:55%, Konica Minolta Shares which flew 1.79%, and the stock Suzuki Motor which jumped 0.82%.
This morning the Nikkei index looks successfully opened higher by 33.24 points or 0:16% that became 19766.32 points from the previous closing position at 19732.92 points and reached the highest position before the 19,750,76 points and the previous low at 19633.75 points. But slightly different from the movement of Nikkei index futures this morning opened with the same position as the previous closing position which is 19 770 points and the achievement tertiggi previously traded at 19 810 points and the previous low at 19 610 points.
Based on the results of the previous closing, the Analyst Vibiz Research Center estimates that the movement of Nikkei index today will still try to penetrate the resistance at 19 795 points with MA5 on BB10 H4 and daily, if the first resistance is penetrated, the expected movement will try to penetrate the next resistance at 19.870 points with MA5 on BB10 daily.
If the movement of the index turned lower, it is estimated that the movement of the index will try to penetrate the first support at 19.640 points with central MA5 BB10 daily, if it succeeded in the first support level is breached then the predicted movement of the index will try to penetrate the next support at 19 560 points with MA5 under BB10 H4.
Technically, the index likely to weaken on the trading session today, Monday (18/05), 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 of which is likely to increase, early indications bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first support level that is 19 770 and 19 830 19710. If it fails in, then the next index is expected to tend to retest the resistance level that is 19 860 and continued until the possibilities are in the area of 19 910.
Strong Rally, Pound Trying Out Of Pressure
Sterling in trading last week showed a trend observed generally strengthened against the US Dollar. Trading currency pair GBP / USD is once opened in the range of 1.54524 at the beginning of the trading week has raised around 272 pips or about 1.76% and closed at around 1.5725.
Analysts suggested that the stronger currency on the Sterling last week related to the report of the Office for National Statistics said that industrial production in the UK has increased, exceeding expectations.
The development is shown by the increase in economic indicators Industrial Production m / m which improved to a figure of 0.5% from the previous period is 0.1%. Encouraging information that shows better performance than the estimated number of economists, who had expected to be dropped to 0.0%.
In trading this week (May 18 to 23), the normal range of GBP / USD weekly estimated to have the support level at 1.54736 and then at 1.5222 while the resistance level at 1.5895 and then at 1.6065.
The movement of the currency pair is expected to be influenced by several economic data releases which include: Retail Sales m / m and CBI Industrial Order Expectations.
Technically, the trading session today, Monday (18/05), pound dollar pair has an opportunity to move in a negative trend.
The weakening of sterling mainly expected soon reexamines the minimum Support at 1.5660 and maximum 1.5600. Meanwhile, if the pound is able to break and hold above 1.5712, then the other alternative scenario that is likely to test Resistance pounds existing in the area of 1.5740 and 1.5800.
Weakening Dollar Leads Gold Wins Biggest Weekly Rally
Gold rose modestly, biggest gain since mid-January after a series of recent US economic data sank Dollar exchange rate and downed US rate hike expectations in the near future. Data released Friday showed US consumer sentiment fell less than economists’ expectations in this month, despite earlier reports growth in manufacturing activity in New York State accelerated in May after declining for the previous 3 months.
The rate of growth has attracted stranded charm Dollar rally last month and instead increase the demand for gold as an alternative. Low interest rates also added allure of gold which does not give flowers, unlike other assets such as bonds.
Technically, gold in today’s trading session on Monday (18/05) 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 1215.10 and re-test the maximum level of 1210.00. However, if the price of gold is able to break and hold above 1221.90, the estimated price of gold could potentially test the Resistance 1223.40 and 1228.10.
