Nikkei Wednesday Back Benefited
Nikkei index opened with a continuing upward trend and reached the highest level since January 2001. Continued weakening of the Japanese yen appears to be still a positive boost to the movement of the stock market this morning.
On the other hand before the Tokyo stock market trading began seemed GDP Japan Japan contributed to reinforcing the stock market in early trading this morning, by showing an increase to 0.6% from the previous release at 0.3% after a revised and release the results far exceeded the expectations of economists who would showed a decrease to 0:19%.
Nikkei stock index strengthened by 0.97% Bridgestone that shot, Denso shares soaring 0.80%, Fanuc shares that shot 1%, Hino Motors shares soaring 0.80%, Mitsubishi Heavy Industries soared 1.21%, Panasonic shares that shot 1%, shares Suzuki Motor which surged 0:56%, and shares of Toyota Motor which rose 0.65%.
This morning the Nikkei index opened at 146.21 points bolted or 0.73% 20175.59 points from the previous closing position at 20026.38 points and reached the highest position previously traded at 20087.70 and the lowest point at 19946.75 points previously. But a little different on the movement of Nikkei index futures opened lower this morning by 55 points or 0:27% being 20 125 points from the previous closing position at 20 180 points and reached the highest position before the 20.190n points and the previous low at 19 950 points.
Based on the results of the previous closing, the analyst estimated that the movement of Nikkei index today will still try to penetrate the resistance at 20,100 points on MA5 on BB10 daily, if the movement of the index broke through the first resistance is expected to mencaba penetrate the next resistance at 20 165 points with MA5 top BB10 daily.
If the movement of the Nikkei index turned lower direction, it is predicted that the movement of the index will try to penetrate the support at 19 975 points with MA5 on BB10 H4, if the movement of the index broke through the first support is expected to try to penetrate the next support at 19 920 points with MA5 on BB10 H4.
Technically, the index likely to weaken on the trading session today, Wednesday (20/05), 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 level of support in advance ie 20100 and 20040. If it fails at 20165, then the next index is expected to tend to retest the resistance level 20190 and continued until the possibilities are in the 20250 area.
Yen Weakens against the US Dollar
Yen moves further by weakening against the US dollar on Wednesday (20/5). Yen rising trend has continued to strengthen backward from a few days.
Reported from housing data also observed improved, at the level of 1.14M from 0.94M in the previous month. The market itself is projecting at 1.02m level. While in Japan if GDP can be improved eating can certainly provide a positive surprise, but it was too early to conclude the US, because the recovery from the second quarter based on the data one month.
Japanese fundamental data will be reported later at 6.50am with the data Prelim GDP forecast unchanged at 0.4%, the same from the previous quarter.
Technically, today’s trading session on Wednesday (20/05), 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 121.30 minimum and maximum 122.00. Meanwhile, if the Yen could not break below 120.84 and then survive another alternative scenario will be Yen likely to test support in 120.25 and 119.50 area.
Greenback Spike Stop 5-Day Rally Gold
Gold plunged and allow a five-session rally stalled as the strengthening of the US Dollar against its currency pairs. Gold trading ended at the level of $ 1207.30 per troy ounce, daily lows near $ 1,205.65 to $ 1,225.48 daily highs.
Gold is getting two shots; the first after the ECB signaled will increase the bond purchase program by 1-trillion euros over the next two months in anticipation of a decrease in liquidity during the holiday season. After that, gold continued weaken after data showed the number of US home construction rose 20.2% in April, the biggest increase in more than 24 years. Both these factors encourage the strengthening of the US dollar against the currency pair and instead hit the gold market to its lowest closing level a week.
In the midst of the majority of US economic data disappoints, the shock of the home market recovering market sentiment will be the possibility of a rate hike in the near future before the release of important data that meeting the minutes of the Fed’s April policy meeting on Wednesday.
Technically, gold in today’s trading session on Wednesday (20/05) 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 1203.10 and re-test the maximum level of 1198.25. However, if the price of gold is able to break and hold above 1208.70, the estimated price of gold could potentially test the Resistance 1209.50 and 1204.10.
