Nikkei Drops Nearly 4 Percent
At the end of trading yesterday the Japanese stock market, the Nikkei index ended plummeted 624.44 points, or 3.61 percent, at 16,666.05. The weakening of the Japanese market triggered the yen’s rise.
The currency jumped about 3 percent after the Bank of Japan (BOJ) maintain a stable monetary policy and did not issue a further stimulus.
The yen moved sharply higher, with the pair dollar / yen fell 2.97 percent to 108.14 at 15:15 HK / SIN, compared to the 111 level it traded before the BOJ’s decision.
A stronger yen is a negative for exporters because it typically reduces their overseas profits when converted into local currency.
Shares of major Japanese exporters closed down, with Toyota shares closed down 3.27 percent, Nissan shares fell 4.31 percent and Honda’s fell 4.18 percent. ,
Japanese banks also fell sharply, with shares of Mitsubishi UFJ dropped 5.95 percent, SMFG fell 6 percent and Nomura shares fell 10.05 percent. The Nikkei index heavyweight Fast Retailing fell 5.79 percent.
As for the Nikkei index futures tracked down -60 points or -0.36% at 16.440, down compared to the previous closing at 16,500.
Technically,
Resistance: 16400 16490 16590 High / Low: 17580/16250
Support: 16270 16220 16170 Running Price: 16 325
Comment: For intraday trade today suggest Buy at 16 290; stop and reversal if break below 16240; and target at 16 510; reversal target at 16100.
GBPUSD Eyeing 12-Week Peak Level
Sterling utilizing dollar weakness with the shot near a 12-week low on Thursday, amid expectations that the Federal Reserve will not raise interest rates in the near future.
However, the appreciation of sterling may still be limited after the latest YouGov poll results show an increase in support for Britain to quit the EU, ahead of the referendum in June. An online survey that was held on Monday and Tuesday to show support for Britain to leave the European Union rose by 3 percentage points compared to the previous survey to 42%, while support to survive only increased by 1 percentage point to 41%.
On the technical side, the bullish movement may continue for GBPUSD still is above the MA 21 on 4-hour chart. Stochastic and RSI holds above the center line also supports the outlook. Needed stability above 1.4605 area to promote the sustainability of the recovery to the highest level Feb. 4 at around 1.4665.
Technically,
Resistance: 1.4650 1.4700 1.4750 High / Low: 1.4613 / 1.4602
Support: 1.4560 1.4510 1.4450 Running Price: 1.4612
Comment: For intraday trade today suggest Sell at the level of 1.4625; stop loss at 1.4660; the target at 1.4528.
Oil Rise to Highest Level Again
World oil prices rose again in the US trading session yesterday, reaching a new high this year. Rose for the third consecutive day, oil prices received a boost from a weaker dollar after the Federal Reserve kept interest rates unchanged on Wednesday and signaled no rush to raise interest rates, analysts said.
“We have a relatively dovish Fed running, so we had a little movement in the US dollar lower – a positive for commodities,” said Bart Melek of TD Securities. The oil market is watching the passage of a global oversupply at this time “and offered some technical hikes,” said Melek. “Brent might want to move towards 50 dollars.”
In London, Brent North Sea for delivery in June, the European benchmark, rose 96 cents to its highest level since November, to settle at $ 48.14 per barrel level. US benchmark crude West Texas Intermediate (WTI) for delivery in June, rose 70 cents to end at the level of $ 46.03 per barrel on the New York Mercantile Exchange.
Technically,
Resistance: 46.00 46.50 47.00 High / Low: 45.93 / 45.60
Support: 45.20 44.70 44.10 Running Price: 45.70
Comment: For intraday trade today suggest Sell at the level of 46.30; stop and reversal during a break above the 46.60; targets at the level of 44.60 and target of reversal at the level of 47.80.
