Yen Nikkei Try Sustain Performance
Nikkei reduce weakening of the yen weakened after returning to restore investor confidence improved earnings outlook for Japanese exporters. USDJPY touched 113.75; 6 years near its weakest level achieved 114.20 last Friday. If a weaker yen continues then this may help repair the competitiveness of Japanese exporters in the international market. Nikkei futures are now traded 16900; try to stay away from the low level of 16 780 daily.
However, investors appear reluctant to push up the index is too high with increasing anxiety about the euro-zone economy. The European Commission lowered the outlook for the euro-zone growth of 1.2% to 0.8% for 2014. The circulation of the report that there is disaffection of some central bankers in the euro zone against the leadership style of ECB President Mario Draghi also raised doubts that the ECB can run Quantitative Easing policy. Investors also look careful look at the political dynamics in Washington as it does in the US Senate election. The market wants to see whether the results of the election will make the Republicans can take control of the Senate which has been dominated by the Democratic party.
Meanwhile, shares of Honda Motor and Nissan automotive rose almost 1%, although the two leading car manufacturers in Japan that cut sales outlook in China. Honda estimates that the level of sales would drop from 900,000 units to 800,000 units in 2014. Nissan vehicles to predict a 9% drop in sales for 2014. Shares of Softbank fell 4% after the Japan’s leading telecom operators cut profit outlook by 10% for the third quarter of 2014.
Technically, the index in the trading session today, Wednesday (05/11) likely to weaken, test negative trends, the impact of Wall Street. On the bearish engulfing formation M15 chart gives an opportunity for the index to move downside. However, the volume is likely to increase, 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 level of support in advance ie 16800 and 16835 16750. If you fail, then the next index is expected to tend to retest the resistance level of 16850 and followed up the possibility of being in the 16900 area.
Optimistic Sterling Welcomes UK PMI Services
Sterling rose against the US dollar moved ahead of the survey is expected to show expansion of the UK service sector is strong. But Sterling is still limited by the increase in reports Tuesday that showed UK construction sector PMI fell to 61.4 in October from 64.2 the previous month, indicating the industry is growing at the weakest pace in five months.
Analysts argue that the PMI figures this week could provide an indication of whether the UK will experience a slowdown at the end of the year after posting solid annual growth.
Technically, today’s trading session on Wednesday (05/11), pound sterling-dollar pair has an opportunity to move in a positive trend.
The strengthening of the pound sterling primarily expected soon reexamine the minimum resistance at 1.6050 and 1.6100 maximum. Meanwhile, if the pound sterling was unable to break and stays below 1.6004 then another alternative scenario that is likely to test support the pound sterling in the area 1.5950 and 1.5900.
Gold’s rebound from its lowest position
At the close of trading on Tuesday metal commodity, natural gold ended higher after a sharp decline for 4 years in the previous session after the end of the Fed’s QE program and the announcement of the stimulus by the BOJ.
Gold for December delivery ended the day up 0.09% or 1:00 points at $ 1,168.70. Gold futures were likely to find support at $ 1,166.20 with the highest resistance at $ 1,169.00.
Gold prices closed last week declined $ 27, or 2.3% ending at $ 1,171.60 an ounce. Meanwhile, the dollar surged supported by a stimulus program in Japan weighed on commodity exchanges metals and uncertainty of economic growth.
Relatively strong economic data depress precious metal and push up stock prices. The US economy grew 3.5% in the third quarter, supported by a surge in exports and federal government spending.
BOJ support increased annual asset purchases initially at ¥ 80 trillion from the previous target range of ¥ 60 trillion to ¥ 70triliun, amid concerns about inflation and reduced Japanese economic data were gloomy.
Meanwhile, silver for delivery in December also ended up 0.21% to 16.023, copper for delivery in January was stable at 3017 levels.
Technically, gold at today’s trading session on Wednesday (05/11) 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 1162.50 and re-test the maximum level of 1157.10. However, if the price of gold is able to break and hold above 1167.30 then estimated the price of gold has the potential to test the 1170.50 and 1175.00 Resistance.
