Pressure Yen Subvert Nikkei Early Week
Starting the Tokyo stock exchange trading beginning the second week of April (6/4) must Nikkei index opened lower with cut reinforcement at the end of the previous week’s trading. Strong pressure Japanese yen at the end of the US trading session last weekend a positive sentiment weakened in early trading this morning the stock market.
Significant strengthening of the Japanese Yen which responds to negative US fundamental data at the end of last week that the US labor sector data makes Japanese Yen rose by 76 pips or 0.64% to reach 118.97 which is the highest gain at 118.72 and the lowest attenuation at 19.95.
Weakening led by exporters in early trading today on the strengthening of the Japanese yen as Denso shares fell significantly by 1:40%, Hino Motors shares fell significantly by 1:33%, Isuzu Motors shares fell significantly by 1:47%, Nikon shares fell significantly by 1:40%, shares Nissan Motor weakened significantly by 1.85%, Sony shares fell significantly by 0:58%, as well as Toyota Motor significant weakening of 1.25%.
The movement of Nikkei index opened lower Monday morning by 167.59 points or 0.86% which is 19267.49 19435.08 points which became the highest points by reaching previously at 19432.79 points and the previous low at 19289.04 points. Likewise, the movement of Nikkei index futures this morning which also opened lower by 55 points or 0:28% which is 19 320 points from the previous closing position at 19 320 points to reach the previous highs at 19 475 points and the previous low at 19 335 points.
Based on the previous closing, then Analyst Vibiz Research Center estimates that today’s Nikkei index movement will move the negative diteritori to try to penetrate the support at 19 420 points with the middle 10 MA5 bolinger daily, if it breaks, the first support is expected to penetrate the second support at 19 354 points with bolinger under 10 daily.
If the movement of the index changed direction, the analyst estimated that the movement of the index will try to break through resistance at 19 492 points with middle bolinger H4 daily, if it breaks then the first resistance is expected to try to break through resistance at 19 566 points with under 10 MA5 bolinger daily.
Technically, the index on the trading session today, Monday (06/04) 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 19300 and 19210. If it fails at 19 375, then the next index is expected to tend to retest the resistance level of 19410 and continued until the possibility of being in the 19460 area.
Political Uncertainty Shadowing Sterling Performance
Sterling traded higher against the US Dollar on Friday after the release of data Non-farm payrolls in March were worse than expected. However, the increase in cable remains constrained by political uncertainty ahead of elections in May.
Event televised debate on Thursday, which became part of the British national election campaign, failed to produce a clear winner with 4 poll shows 4 different winners. The survey is done in less than 6 weeks before the election May 7 shows David Cameron of the Conservative party and Ed Miliband Labour representing competing on track to win a majority.
Technically, the trading session today, Monday (06/04), pound sterling-dollar pair a chance to move in the negative trend.
The weakening of the pound sterling primarily expected soon reexamine the minimum support at 1.4840 and 1.4710 maximum. Meanwhile, if the pound sterling was able to break and hold above 1.4904, then the other alternative scenario that Pound chance to test resistance in 1.4940 and 1.5010 area.
Gold Soared By US NFP data
In early trading Monday gold prices soared toned (6/4). Precious metal prices rose rose and reached the highest position since March 26 after the market participants again poured pessimism that the Fed will raise interest rates in June. It is estimated that the increase in the benchmark interest rate will be postponed until September.
Release of data from the US labor sector last week less convincing results. NFP has increased vastly under estimated. NFP March only increased by 126K while predictions put the figure at 246K. NFP in February was also revised down.
Dollar exchange rate fell sharply after the release of the NFP data. NFP data is the lowest since December 2013 last month. The weakening dollar again raised the status of safe-haven gold.
Spot gold prices in trading Monday in the position of 1217.60 dollars per troy ounce. Precious metals prices have increased sharply by 15.20 dollars, equivalent to 1.26 per cent compared to the last close of trading last week.
Analyst estimates that the spot gold price movements today LLG will return further increased although it will tend to be limited. Precious metals price movements have the potential to strengthen as traders began back after safe-haven assets such as gold amid sluggish labor market conditions in the United States.
In this har day trading price of gold could potentially test the resistance level at position 1220 dollars per troy ounce. If successfully penetrated the price will continue to rise again to the position in 1225 dollars. Meanwhile, if there is movement which turned lower price will test the support level at the position in 1210 dollars. If successfully penetrated the price will continue weakening to the position in 1200 dollars.
Technically, gold trading session today, Monday (06/04) the potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1220.10 and re-test the maximum level of 1225.87. However, if the price of gold was unable to break and stays below 1216.70 then estimated the price of gold could potentially test the 1214.78 and 1212.40 Support.
