The Nikkei Slips, With Nintendo Corrected
Japanese stocks opened flat on Friday but was slightly lower, with the Nikkei Stock Average was down about 0.3% at 19355 at 8:05 pm. With the US dollar moving 120.76 yen, almost the same as yesterday, shares of large companies move mixed, with shares of Sony Corp. up 0.2% and Panasonic Corp., which rallied 0.4%, while the shares of Hitachi Ltd. fell 0.5% and Kyocera Corp. down 0.4%.
Nintendo Co. shares fell 2.9%, berkosolidasi after surging almost 38% within a week after the news that they are planning to make mobile games. Toshiba Corp. shares rose by 2.3%, when they announced the commercial production that allows smartphones to have the 13-megapixel image sensor and tablets to record HD video at a high frame rate. Meanwhile, from the automotive sector, Honda shares fell 0.4% after adding more than 100,000 vehicles were withdrawn in the US because of damaged airbags.
Technically, the index on the trading session today, Friday (20/03) 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 19460 and 19525. If it fails in 19400, we then estimated the index tends to retest the support level of 19 360 and continued until the possibilities are in the area of 19 325.
Yen Looks Sideway Movement
The movement of the yen looks sideways after the release board minutes of the Bank of Japan policy meeting that focused on the data consumer prices flat as weakening the result of crude oil price.
Board Bank of Japan also seems to focus on an inflation target of 2% in this fiscal year despite the economic growth outlook seems to show no signs of progress.
The euro weakened as the implementation of a new bond buying program starts and the progress of crucial talks with Greece in the high-level meetings in Brussels and opportunities further talks in Berlin.
We argue that the movement of potentially bearish yen as investors seem optimistic outlook for Japan’s economic growth in the results of the policy board meeting minutes despite inflation target is 2%.
The euro rose as the optimism of the potential market for the EU economic summit took place and ahead of the release of the German PPI data and the data that is expected to increase Europe’s current account is expected to increase.
In this case when there is progress in talks with Greece’s Prime Minister Alexis Tsipras Greece will continue talks with German Chancellor Angela Merkel in Berlin in the near future.
Potentially weaken the US dollar ahead of a speech from Federal Reserve officials that two Federal Reserve Bank of Atlanta Dennis Lockhart and Federal Reserve Bank of Chicago Charles Evans so some investors to sell.
Technically, today’s trading session on Friday (20/03), 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 121.25 and 121.80 maximum. Meanwhile, if the Yen was able to break and stays below 120.74, the other alternative scenario that Yen likely to test support in 120.50 and 120.10 area.
Gold Toward First Weekly Increase Due Fed Outlook
Gold is headed for its first weekly rise since February, extending a rebound from three-month lows, after the Federal Reserve sinyalkan to slow the rate of rise in US interest rates.
Gold is currently moving the range of $ 1,172.80 / onz at 8:44 pm of $ 1,171.18 on Thursday, up by 1.2% on the week. The precious metal fell to $ 1,142.92 on March 17, which is the lowest level since Dec. 1, after posting a decline in two weeks until March 13.
The Federal Reserve on Wednesday said that the growth has taken place with the “moderate” and inflation is still at the level we desire. Officials revoke the promise to “be patient” in tightening policy, although they lowered its forecast for interest rates at the end of this year. The rise in interest rates would be appropriate actions when the Fed see further improvements in the labor market and the reason for the belief that inflation will return to a level of 2% over the medium term, said Janet Yellen.
David Lennox, an analyst at Fat Prophets in Sydney said that he (Yellen) take the focus away from other economists saying that the Fed will see inflation because it is what they are looking for. June is what the people to the possibility of a rate hike. But today I saw inflation can not move that fast to reach their targets.
The inflation rate which is used as a benchmark by the Fed is currently only 0.2% in January from a year ago, and inflation has been below the central bank’s target of 2% for 33 months straight.
Technically, gold in today’s trading session on Friday (20/03) 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 1165.33 and re-test the maximum level of 1160.73. However, if the price of gold is able to break and hold above 1170.10, the estimated price of gold could potentially test the 1173.40 and 1177.72 resistance.
