Nikkei End Trading on Wednesday in the Red Zone
At the end of trading on Wednesday Japan’s Nikkei index ended with a record decline. Japanese stocks moved into negative territory although it is still not too big decline compared to the close of trading on Tuesday. Wednesday Nikkei experience sideways movement.
The increase in the exchange rate of the yen against the US dollar resulted in selling pressure up to shares of exporters. Wednesday yen further away from the level of 118 per dollar or the lowest position in the past 7 years he touched last week.
Honda Motor experiencing closing down 3 percent after the carmaker has admitted failing to warn the US safety regulators regarding accidents and death related to vehicle production since 2003.
Aluminum stocks rallied at the end of trading on Wednesday. The Nikkei newspaper reported that Toyota Motor will use aluminum instead of steel for the production of luxury cars. Daiki Aluminum experienced a sharp increase of 10 percent. UACJ Corp. rose sharply by almost 9 percent.
Wednesday’s Nikkei closing spot seems to have weakened though thin. The spot index ended posted weakened by 24.04 points or 0:14 per cent and stood at 17383.58 points.
Analyst estimates that on Thursday’s trading Japanese stock market will be influenced by the performance of stock markets of Europe and the United States. Important data from the United States that would release are jobless claims, the Core Durable Goods Orders, new home sales, pending home sales and crude oil supply report.
In general, the Japanese stock market sentiment is still relatively strong supported by an increase in the stimulus plan and the plan delays the increase in the state sales tax, although the potential for correction also began openly considering the index already had reached its highest level in seven years. For further trade Nikkei is likely to test the resistance level at 17480 points. To support level will met at position 17 280 points.
Technically, the index on the trading session today, Thursday (27/11) 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 of 17400 and 17450. If it fails in 17340, we then estimated the index tends to retest the support level of 17310 and continued until the possibility of being in the 17260 area.
Technically, the trading session today, Thursday (01/11), the dollar yen pair a chance to move in the negative trend.
The weakening of the yen mainly expected soon reexamine the minimum support at 115.00 and 113.50 maximum. Meanwhile, if the Yen was able to break and hold above 117.53, then the other alternative scenario that Yen chance to test resistance in 118.10 and 119.50 area.
Dollar Weakens Vs Yen
The dollar moved lower against the yen on Wednesday and move stable against the euro amid investors awaited a series of economic reports on the evening of Wednesday, ahead of the Thanksgiving holiday.
The dollar turned lower on Tuesday after a pessimistic data on consumer confidence and housing prices Balance a report showed US economic growth is much stronger than the initial estimates in the third quarter.
The Conference Board reported that its consumer confidence index fell to its lowest level in five months in November, one month after touching its highest level in seven years, as waning consumer optimism in the short-term outlook.
Another report showed home prices in the US rose more than expected on an annual basis in September, but did not change on a monthly basis.
Demand for the dollar continues to rise after the Commerce Department reported that the US economy recorded growth of 3.9% in the three months to September, it is much higher than the initial estimate of 3.5%. Economists had predicted there would be a slight downward revision to 3.3%.
Personal spending rose 2.2% in the third quarter, beating estimates of 1.9%.
The US will release a series of data on Wednesday, which included reports unemployment claims and new home sales ahead of the holiday Thursday.
The dollar index, which tracks the greenback against a series of major currencies, is stable in the range of 87.85, below the level of last week reached its highest level in four years 88.51.
Weakening Dollar Sustain Gold Prices
Gold closed down on Wednesday as positive data from the US recently sparked speculation that the Federal Reserve may soon raise interest rates, pressing the performance of gold.
Data released on Wednesday showed the level of domestic consumer spending grew at a lower than estimated in October, while US jobless claims rose to the highest level since September and new orders for capital goods in the US fell for a second month in October.
Gold has been consolidating since recovering from a low leevel 4-1 / 2 years old at the beginning of the month. Gold got some buying interest in Asia overnight, according to MKS, although it is not enough to push prices up. Speculation that Swiss citizens can choose to support a motion to raise its gold reserves have sustained the price of gold.
“We have to wonder how long the US data could support gold prices,” said Macquarie analyst Matthew Turner. “A lot of up and down on US data this year, but the Fed still has not changed its policy. At this point, it takes more surprises to make a big impact.”
Technically, gold trading session today, Thursday (27/11) 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 1200.80 and re-test the maximum level of 1205.87. However, if the price of gold was unable to break and stays below 1197.90 then estimated the price of gold could potentially test the 1195.50 and 1190.60 Support.
