Nikkei: Exporter Shown Prima, Yen Eroded to 116
The Nikkei – Japan appeared primed to rally more than 1 percent in trading on Wednesday after Tuesday’s session record closing level above 17,000 for the first kai in the last 7 years.
Strengthening the Nikkei Wednesday thanks mainly lifted by stock-based AHAM exporters who rallied as the yen weakened to the level of 116 verus dollars.
A weaker yen started racing after the Japanese government through the Bank of Japan poured stimulus identified by buying a number of asset-based mutual funds in the form of exchange-traded funds (ETFs) to worth ¥ 38 billion on Monday.
Moreover, Abe also rumored to accelerate the parliamentary elections to gain support for new policies that will release.
As for its policies in the conduction stretcher like reviving nuclear reactors and pave legislation allowing Japanese soldiers participated in combat overseas joined forces of other countries.
On the floor of the Tokyo Stock Exchange listed stocks straddle-based exporters such as Nissan Motor Co., rebounded 1.9%, Toyota Motor Corp. rallied 1.8%, and Honda Motor Co., bolted 1.5%. Meanwhile, shares of Sharp Corp. jumped up to 2.4%, shares of electronic components manufacturer TDK Corporation jumped 2.1%, and the stock camera Olympus Corp. rose 1.8%.
On Wednesday, the Nikkei index rallied + 1.64% monitored and managed to reap the gains of up +281.30 points in the range of 17405.41. While the yen traded at around 115.60 after eroded up to 116.00 versus the dollar.
Technically, the index on the trading session today, Thursday (13/11) is likely to strengthen, test positive trend. At the M15 chart bullish hammer formation provides opportunities for the index to move upside. However, the volume of which is likely to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first resistance level 17270dan at 17225 17350. If it fails, then the next index is expected to tend to reexamine the level of support that is 17200 and continued until the possibilities are in the area of 17 150.
Yen Weakens Against Dollar
Trading foreign exchange on Thursday (13/11), observed yen weakened slightly against the US dollar after the release of a series of Japanese economic data today.
During the course of trade in the Asian session, the pair USDJPY gained a 0.01% at 115.55 level where the pair was observed to hit a daily low of 115.43 for the session and the highest level of 115.66 for the session daily.
Yen natural look slightly weakened against the greenback after a report released by the Cabinet Office of Japan has declared manufacturing orders for machines in Japan region has experienced an increase of 2.9% in September, after rising by 4.7% in the previous month.
Meanwhile, a report released by the Bank of Japan stated that the producer price inflation on an annual basis in the territory of Japan has experienced a decline of 2.9% in the last month.
Meanwhile, an official report revision of Japan’s industrial production is scheduled to be released at 11:30 am Jakarta time. Survey of economists have estimated that Japanese industrial production to increase by 2.7%. Along these estimates, can be re-recorded yen strengthened against the greenback, but if the results differ by noting a decrease in the results of the Japanese industry, the yen will continue weakening against the US dollar.
Technically, today’s trading session on Wednesday (13/11), the dollar yen pair likely to move in a positive trend.
A stronger yen is mainly expected to immediately re-examine the minimum resistance at 117.50 and 120.00 maximum. Meanwhile, if the Yen was able to break and stays below 115.59, the other alternative scenario that Yen likely to test support in 113.90 and 110.00 area.
Strengthening of US Dollar Gnaw Gold Performance
Gold prices fell after the US dollar strengthening successfully eroding the appeal of the precious metal as an alternative investment asset. The absence of US economic data make traders turn to the foreign exchange market to obtain a catalyst of gold price movements. The US dollar extended gains after dovish BoE inflation report shifts the potential market expectations BoE rate hike further into the 4th quarter 2015.
Bearish sentiment is still dominant, and this can be seen from the continued release of funds from the SPDR Gold Trust, the biggest gold-based ETF in the world. Assets of the SPDR Gold Trust berutan down to 6 sessions with gold ownership rate is now at its lowest level since September 2008. Analysts at Societe Generale Michael Haigh see the possibility of gold prices could fall to $ 1,000 but Standard Chartered uttered purchase physical gold in Asia can sustain the performance of the price of gold . XAUUSD closed down 0.43% to $ 1,160.00 in trading Wednesday.
Technically, gold in today’s trading session on Thursday (13/11) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Bands that began to widen, thus giving impetus to the gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1153.50 and re-test the maximum level of 1148.00. However, if the price of gold is able to break and hold above 1158.90, the estimated price of gold could potentially test the 1160.90 and 1165.50 resistance.
