Nikkei Ends in the Red Zone
Nikkei last week continued to decline from weakening.
The Nikkei 225 closed down last trading 0.30% or 60.47 points to 19883.94, slipped from its highest level since August 20, 2015. The Tokyo Stock Price Index (Topix) also closed lower, down 0.49% to a level of 1,594 , 45. This week, the Topix dropped 0.54%.
The mining sector led with a rise of 0.89%, followed by industrial metals sector rose 0.32%. Both sectors rose in line with the sharp rise in commodity prices. Shares of Japanese oil company, Inpex, gained 0.93%. The Sumitomo Metal Mining stocks moved higher 2.1%.
Technically, the index on the trading session today, Monday (30/11) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, the M15 chart, was oversold, signaling upside.
It is estimated, the index test the first resistance level of 19 925 and 19 855 20010. If it fails in, then the next index is expected to tend to retest the support level of 19800 and continued up to the possibility of being in the area of 19 750.
Yen Gains Likely
Yen in Asian trade earlier in the week monitored rose on Monday (30/11) after retail sales weaker than industrial production in October.
USDJPY fell a 0.01% to a level of 122.80. In Japan, industrial production for October rose 1.4%, while retail sales jumped 1.8%, well above the 0.8% year-on-year increase is expected.
Next week, investors will focus on data of US nonfarm payrolls for the month of November, the last jobs report before the Federal Reserve decided to hike interest rates on December 15 to 16.
Technically, today’s trading session on Monday (30/11), 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 123.25 and 124.00 maximum. Meanwhile, if the Yen could not break below 122.78 and then survive another alternative scenario the Yen likely to test support in 122.40 and 122.00 area.
Gold Drastic Decline In Commercialized
Gold fell nearly two percent to the lowest in six years and headed into decline for six consecutive weeks under pressure from the strong US dollar and the prospect of rising US interest rates next month.
Spot gold touched $ 1,052.46 an ounce, the lowest price since February 2010, and down 1.2 percent at $, 057.50.
Spot prices fell 2 percent during the last week. US gold futures touched six-year low at $ 1,051.10 per ounce before closing down 1.3 percent at $ 1,056.20 and slid into decline for six consecutive weeks.
Gold hit by the rising dollar. The US dollar traded almost at an altitude of March over the years against a basket of major world currencies.
Senior commodity brokerage of RJO Futures in Chicago Philip Streible said all because of currency exchange, gold fell as the dollar.
Commodities are set to US dollar as gold becomes more expensive for foreign investors when the US currency rises.
The Federal Reserve is widely expected to raise interest rates for the first time in nearly a decade at its next meeting on 15-16 December. Higher interest rates would raise the “opportunity cost” of holding gold are not yielding and can prevent demand and push up the dollar.
Purchasing in China is actually good but it can not help gold prices.
Gold purchases in India in the December quarter probably fell to the lowest level in eight years, hit by poor investment demand and a withdrawal back to back.
Technically, gold in today’s trading session on Monday (30/11) 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 1051.33 and re-test the maximum level of 1046.73. However, if the price of gold is able to break and hold above 1056.30, the predicted gold prices could potentially test Resistance ie, 1059.40 and 1064.72.
