Nikkei Lulled On BoJ Meeting
Nikkei 225 direct shot at the beginning of trading stocks rally following the European and US trading overnight as well as a better outlook following the agreement achieved free trade negotiations involving 12 countries. Within 15-minutes of trading, the Nikkei spot index soared 25 to 1.95% or 350.68 points compared to Monday’s closing level of 18356.17. Each category in the main board to collect profits, with the largest profit achieved by the category of agriculture and fisheries as well as the categories of steel, iron and machinery.
Global stock markets responded positively to news the US, Japan, and 10 countries in the Pacific area finally reached an agreement yesterday Trans Pacific Partnership (TPP), an agreement that has been awaited for five years. But optimism the deal, rated as one of the biggest deal in a generation, it is still considered too early because it still requires the approval of the US Congress. TPP agreement will facilitate trade 12 members, which cover 40% of the global economy, since it would cut trade restrictions and reduce customs duties for automotive products until the rice. Some stocks may get the impact of soaring TPP agreement with Nihon Nohyaku stock chemical companies and manufacturers of engine components Iseki & Co. each rose 2%.
Today the Bank of Japan (BoJ) has begun a two-day meeting will deliver a statement associated with meeting tomorrow. Speculation is the Bank of Japan might announce additional monetary situmulus this month, immediately after the meeting tomorrow, to remove economic contraction and deflation of consumer prices. The Shanghai Composite Index was off at National day.
Technically, the index on the trading session today, Tuesday (06/10) 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 first support level 18180 and 18100. If it fails at 18235, then the next index is expected to tend to retest the resistance level 18280 and continued until the possibilities are in the 18330 area.
Yen Flat Against US Dollar
USDJPY flat 0.00% at 120.47 level. Sakura domestic currency is still at a normal sentiment, investors still keep an eye on the BoJ decision that will provide economic outlook tomorrow.
However, on the one hand, the Fed is also still looking for opportunities to raise interest rates in the early stages. “If that proves true, sentiment USD / JPY will turn bullish. Previous US dollar also fell on the ISM data which the index fell to 56.9 in September from 59.0 in the previous month. The market had expected the index to drop to 57.5 in the last month.
Technically, today’s trading session on Tuesday (06/10), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimal resistance at 120.90 and 121.70 maximum. Meanwhile, if the Yen could not break below 120.45 and then survive another alternative scenario the Yen likely to test support in 120.00 and 119.40 area.
Gold Prices Against Profit Taking Rally
Gold slipped on Monday as traders did some profit taking on the rally last week, triggered by weak US economic data.
Gold jumped 2.2% on Friday, its biggest daily gain since January 15, after the monthly US employment report showed the economy only added 142,000 jobs in September, missing the estimate of 203,000. A result that shook the stock market confidence, and erode the expectation that the Federal Reserve will begin to raise interest rates before the end of this year. A delay in the normalization of monetary policy normalization can be dispelled strengthening US dollar, which makes commodities denominated in the US currency more attractive for holders of other currencies.
Regardless of the rate of gold prices recently, some analysts predict if a number of challenges still to be faced this commodity. Weak inflation, increasing financial stability in Europe, and a stronger US economic activity is still considered bearish pressure will bring for bullion.
Technically, gold on the trading session today, Tuesday (06/10) the 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 1141.10 and re-test the maximum level of 1146.87. But if the gold price could not break and stays below 1136.50 then predicted gold prices could potentially test the Support 1133.78 and 1128.40.
