Japanese Stocks Rebound
At the end of trading on the Japanese stock market yesterday, the Nikkei index ended rebound, after the opening of the trading day yesterday in the red zone. The Nikkei closed up 45.08 points or 0.23% to 19924.89. The Nikkei supported strengthening the positive performance superior stocks.
Shares become the biggest winner in the index on the previous day were shares of electronics manufacturer Sharp, closing 13.64 percent of its shares higher. Earlier in the day, the news that the company and the fund supported Japan, Innovation Network Corporation, may invest in companies if the bank agrees to eliminate some debt.
Blue chip stocks closed mixed, held back by the downward trend on Wall Street. Toyota and Sony rose between 0.67 percent and 0.7 percent while other stocks such as Canon, Mitsubishi Electric and Toshiba saw a decline.
As for Nikkei futures remain stagnant, are in the same position with 19.890 previous closing at 19.890.
For further stock trading on Wednesday will release the economic indicator data indicated September Final Coincident Index is based on the results of the consensus will be at 111.9, down from the previous results at 112.2. The data will also be released September Final Leading Economic Index which is indicated by the results of the consensus will be at 101.4, down from the previous results at 103.5. Also keep in mind the results of the BoJ Policy Meeting this morning.
However, it should also be noted that the US economic data will be released tonight, namely GDP Growth Rate QoQ decline indicated. If this happens then the estimate of US economic growth is expected to slow and will press other global bourses.
But on the other hand, the slowdown in the US economy make the US dollar weakens, but it makes the yen strengthened. Strengthening of the Yen can suppress the Nikkei index.
Technically, the index on the trading session today, Wednesday (25/11) likely to weaken, 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 increase, an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the level of support in advance ie 19 750 and 19690. If it fails at 19810, 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 19 910.
Yen Weakens Against Dollar
Japanese yen in Asian trade appears to weaken against the US dollar on Wednesday (25/11). Turn from the previous session.
USDJPY rose a 0.01% to a level of 122.52. Data released fundamental on Japan BoJ, SPPI in October looks stagnant than the market forecast. At the level of 0.5% from 0.5% in the previous month. The market had expected the index rose at a 0.6% level.
In addition, the BoJ released the minutes of the meeting said that there is no limit to reducing measures if additional action becomes necessary, and also according to many members, must act without hesitation if the price trend change. For the inflation problem, also reported a slowdown in the increase in output, one of the reasons in achieving the 2% inflation target.
Technically, the trading session today, Wednesday (25/11), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 121.80 and 121.10 maximum. Meanwhile, if the Yen is able to break and hold above 122.39, then another alternative scenario the Yen chance to test the resistance at 122.50 and 123.00 area.
Strengthening Potential Holds Gold
Gold rose on yesterday and likely to continue rising due to tensions between Turkey and Russia make market players glanced safe-haven assets. Demand for gold, which is traditionally regarded as a safe haven, rose after Turkey shoot down Russian warplanes in the Syrian border. Turkey calls the aircraft encroaching on the air and did not heed the warnings.
Russian President Vladimir Putin, called the shooting Turkey as a “stab in the back” and would have “serious consequences”.
Yet the downward pressure on gold is still coming from expectations of interest rate hikes by the Federal Reserve in the next month. Data released on Tuesday showed US gross domestic product second estimate of 2.1% in the third quarter, higher than the first estimate of 1.5%. But the data has not been able to make the dollar to continue strengthening.
In addition to the Turkish-Russian, US data today will be a concern is the PCE price index, which is said to be a reference to the Federal Reserve’s inflation.
Technically, gold on the trading session today, Wednesday (25/11) potential reversal, testing positive trend, but prone to profit taking. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Band begins to shrink, thereby giving impetus for gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1080.10 and re-test the maximum level of 1085.50. But if the gold price could not break and stays below 1075.90 then predicted gold prices could potentially test the Support 1072.78 and 1067.40.
