Nikkei Lower on Wednesday
The export performance in the country was still able to record positive growth, but far from the expectations and the results of previous releases seem able to revive the movement of the index Nikkei Japanese stock market in early trading this morning, supported by shares of exporters in the country.
Decreasing trade deficit in the country in September last, which successfully shrank to ¥ -114.5B from the previous release to ¥ -569.6B, seemed bolstered by the sharp decline in domestic imports in the same period to be -11.1%, of the results previous release at -3.1%, but a little disappointed at the performance of domestic exports were unexpected by economists, which grow only to 0.6%, from the previous release to 3.1%, with the expectation of growth became 3.4%.
Japanese stock market this morning is the Sony shares amounting to 2.91%, Nippon Light Metal Holdings 3:06%, JFE Holdings 2.78%, Asahi shares Kasei 5:08%, shares of Panasonic 0.66%, Mitsubishi Heavy Industries 1:57%, shares of Kawasaki Heavy Industries 1:29%, Hitachi Zosen shares 0.90%, Mazda Motor 1.76%, Honda Motor 1:44%, shares of Mitsubishi Motors 1:34%, san Toyota Motor 1:20%.
The opening of this morning’s Nikkei spot index seemed charged by 12.78 points, or 0:08%, by becoming 18194.37 points from the closing position at the end of the previous stock exchange trading on the position of 18207.15 points and was still able to record a positive performance in the highest end of the previous stock exchange trading at position 18 253, 13 points and the largest decline earlier traded at 18147.98 points position.
Likewise, the movement of the index Nikkei this morning which opened down by 30 points or 0:16%, to be 18 190 points from the closing position at the end of trading stock exchanges previously at position 18 220 points and managed to record spike highest shares traded stock exchanges previously at position 18 290 points and previous low at position 18 155 points.
Based on the results of the closure at the end of trading the stock market before, the analyst estimated that the movement of the Nikkei index on Wednesday will potentially reversed strengthened by penetrating the first resistance at position 18,350 points with MA5 on BB10 daily, if the movement of the index broke through the first resistance then expected to try to penetrate The second resistance at 18,500 points with MA5 position on BB10 daily.
If the movement of the index managed to turn around the direction of weakening, it is expected to try to penetrate the first support at 18,250 points with the position of the middle MA5 BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the second support at position 18 150 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Wednesday (21/10) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 18420 and 18500. If it fails at 18 355, then the next index is expected to tend to retest the support level of 18300 and continued up to the possibility of being in the 18250 area.
USDJPY Rise in Morning Session
The movement of the currency market on Wednesday (21/10), observed US dollar strengthened against the yen after the release of Japanese economic reports this morning.
Ongoing trade in the Asian session, the pair USDJPY monitored rose 12:06% to trade at 119.94.
The US dollar strengthened against the yen looks to dominate this morning after the market is faced with the Japanese economic reports. The official report released by the Ministry of Finance, showed that the trade deficit in the region of Japan has seasonally adjusted -0.36T -0.37T in September.
Meanwhile, movement of the USDJPY pair is expected to re-experience a fundamental shift in the price following reports of Japan at 11:30 Jakarta time. The report includes a Japanese industrial activity data, where a survey of economists estimates that there will be a decrease of 0.1%.
Technically, the trading session today, Wednesday (21/10), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 119.20 and a maximum of 18.75. Meanwhile, if the Yen is able to break and hold above 119.91, then another alternative scenario the Yen chance to test the resistance at 120.25 and 120.75 area.
Gold Gains Due to Weakening Dollar
The price of gold sustain its gains from overnight on Wednesday, supported by weakness in the dollar and global equity markets, amid investors awaiting instructions on when the Federal Reserve will Raise US interest rates.
Spot gold prices rose slightly by $ 0.50 to $ 1,178.00 / onz at 8:25 pm. The precious metal rose by 0.5% in the previous session, stop the decline for three consecutive days.
Gold prices rose as the euro rose against the dollar on Tuesday, supported by solid regional economic data and comments from European Central Bank officials who indicate that further monetary easing may not exist in the near future.
A weak greenback makes dollar-denominated gold becomes cheaper for the holders of other currencies, as well as increasing the appeal as a hedge.
Weakness in the equity markets also triggered some buying action haven assets such as gold. Wall Street ended lower on Tuesday on corporate earnings reports were less encouraging, while the Asian equity markets begin Wednesday with sluggish movement.
Although strengthened, gold still trading below 3 1/2 month highs touched last week.
Technically, gold on the trading session today, Wednesday (21/10) 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 1182.10 and re-test the maximum level of 1187.87. But if the gold price could not break and stays below 1177.50 then predicted gold prices could potentially test the Support 1174.78 and 1169.10.
