Nikkei Index Strengthening
At the end of the Japanese stock market trading on Wednesday, the Nikkei index looks closed up 1.3% at 18926.91 significant. This hike is one of the highest rises in Asian stocks trading on Wednesday. The increase in the index resulted from an impressive performance of issuers in the Japanese stock market, among them the high rise of the shares of Japan Post Holdings a new floor on the stock of Japan and other financial stocks.
Stocks that became the backbone of the Nikkei index were shares of Japan Post Holdings ended at ¥ 1,760, up 25.7% higher than the initial public offering (IPO) initial price of 1,400 yen. Meanwhile, shares of Japan Post Bank closed surged 15.2% at 1,671 yen, compared to its IPO price of 1,450 yen, while Japan Post Insurance stocks traded at ¥ 3,430, much higher than the IPO price of ¥ 2,200.
Other financial highest shares are shares T & D Holdings, Dai-ichi Life Insurance and Tokio Marine each jumped about 4%.
Of the natural increase in the energy sector, Inpex led to a surge in the increase of 4%.
Likewise, shares of car manufacturers are increasing. Nissan shares rallied nearly 3 percent after the automaker to raise operating profit outlook for the year, while Daihatsu Motor rose 5.4 percent.
While the movement of the index Nikkei Wednesday, also recorded an increase of 40 points or 0:21%, to be 18 940 points from the closing position at the end of trading stock exchanges previously at position 18,900 points and managed to record the highest increase at the end of trading the stock market today at position 18 940 points with the largest decline on Wednesday at position 18 920 points.
Continue on the Japanese stock market trading Thursday, predicted that investors will get back will move forward the development of the Japanese yen, as well as the results of the closing of the US stock market performance, also this Thursday will be the BoJ Monetary Policy Meeting Minutes.
Analyst estimates that the movement of the Nikkei index on Thursday limited potential to continue strengthening. The index will again try to penetrate the first resistance at position 19 130 points, if the movement of the index broke through the first resistance is expected to try to penetrate the resistance at 19,300 points position.
But if prices turned lower, the index will break the first support at 18,800 points position, if the movement of the index broke through the first support is expected to try to penetrate the second support at 18,650 points position.
Technically, the index on the trading session today, Thursday (05/11) 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 19000 and 18940. If it fails at 19050, then the next index is expected to tend to retest the resistance level 19085 and continued until the possibilities are in the 19130 area.
USD / JPY Touch Highest Level Three Months
The dollar shot to its highest in three months against the yen after the Federal Reserve chairwomen, Janet Yellen, reiterated the desire to raise interest rates in December. In addition, some US economic data released on Wednesday was also a positive impact on the greenback.
In his testimony before the House Financial Services Committee, Yellen said interest rates will rise in December if US economic data in line with expectations or better. Two main reference data into the Fed is the employment data and inflation. For now, Yellen said the data has not been a decision made, and whether or not the interest rate rise will depend on the evaluation of the Federal Open Market Committee in December.
Quoting from CNBC, the probability of a rate hike after Yellen’s testimony rose to 60% based on data from CME Group.
Data index of US non-manufacturing activity showed a rise in October, to 59.1 from 56.9 the previous month. While the trade deficit in September narrowed to $ 1.7 billion from the previous deficit of $ 2.7 billion.
While the data increase the number of private sector employment for October ADP version released as much as 182,000 or 190,000 lower than the previous month. Attention is now focused on adding a data version of the government’s employment Friday, which will clarify the chances of a rate hike by year end.
Technically, the trading session today, Thursday (05/11), the dollar yen pair has an opportunity to move in a negative trend.
Weakening Yen mainly expected soon reexamine the minimum support at 121.00 and 120.25 maximum. Meanwhile, if the Yen is able to break and hold above 121.50, then another alternative scenario the Yen chance to test the resistance at 121.90 and 122.60 area.
Gold Drops Again, Hawkish Statement By Yellen
Gold ended the US trading session with moderate back down, approaching intraday lows and down again to the lowest of four weeks.
Some of the hawkish Fed comments and upbeat US economic data has hit metals market.
The US dollar index pushed when Fed chief Janet Yellen told the US House of Representatives committee on banking regulations. He said that a Fed rate hike in December allows occurs because the US economic data were better over the last few months and the expectation may be the same in the coming months.
The dollar also benefited from the data the US ISM non-manufacturing optimistic. Gold prices started retreating from earlier gains after the ISM report.
US ADP national employment report for October, released rose 182,000, which is in line with market expectations and had little impact on the market. Traders and investors will await US employment report on Friday from the Labor Department, which can be said to be an important point in the week. Nonfarm payrolls are expected to rise about 185,000 in October, following an increase of 142,000 in September.
In overnight news, the Chinese president said Wednesday the country’s economic growth continued to slow due to domestic and global uncertainties. President Xi Jinping said that China’s economy could continue to grow by about 7% annually.
In other news on Wednesday, producer prices in the euro zone are reported down 0.3% in September compared with August and down 3.1% year on year.
Technically, gold in today’s trading session on Thursday (05/11) 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 Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1104.10 and re-test the maximum level of 1099.73. However, if the price of gold is able to break and hold above 1109.40, the predicted gold prices could potentially test Resistance ie, 1107.40 and 1105.72.
