Nikkei Welcomes Weakening Yen
Nikkei up after the return of a weaker yen makes investors re sure to improved earnings outlook for Japanese exporters. USDJPY touched 119.10 in early Asian session; away from the strongest level achieved in December 117.42 yesterday. If the weakening of the yen continues then this can help improve the competitiveness of Japanese exporters in the international market. Nikkei futures rose 0.78% and is now trading at 17 360.
Investors also seem optimistic ahead of Japanese parliamentary elections that will be conducted on 14 December. Coalition of parties led by Prime Minister Shinzo Abe is expected to return control of parliament and this will certainly provide legitimacy for Abe to run Abenomics policies issued Japanese sake of recession and deflation.
However, investors appear reluctant to push up the index is too high ahead of the publication of a series of Chinese data at 12.30 pm. Beijing will release data on industrial production, investment, and retail sales that could provide further guidance on the condition of one of Japan’s major trading partners. Investors are quite concerned with the continuing threat of a slowing Chinese economy in the last quarter after data earlier in the week showed a worsening of China’s exports and imports.
Technically, the index on the trading session today, Friday (12/12) 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 17500 and 17550. If it fails at 17 460, then the next index is expected to tend to reexamine the level of support that is 17430 and continued until the possibilities are in the area of 17 380.
This morning, Yen Weakens Observed
Trading foreign exchange on Friday (12/12), observed yen weakened against the greenback in Asian session due to the impact of the strengthening of the US economy in the previous session as the market awaits the release of the report the Japanese and Chinese industry.
USDJPY strengthened 0:33% to 119.09 where the pair was observed to hit a daily low of 118.69 for the session and the highest level of 119.12 for the daily sessions.
The impact of the weakening of the yen against the US dollar has been going on since last night, when a series of economic reports showed that the central economic conditions improve. Based on the report from the US Census Bureau states that US retail sales rose by 0.7% in November, while the core retail sales have experienced an increase of 0.5% in November.
A separate report released by the US Labor Department also showed that the number of jobless claims decreased by 3,000 to a seasonally adjusted 294,000 in the week ended December 6th.
Meanwhile, the market’s attention this morning amid reports are also being focused on Japan’s industrial area which is scheduled to be released at 11:30 am Jakarta time. Survey of economists had forecast that Japan’s industrial production will be decreased by 1% in October.
The weakening of the Japanese industrial production by the economists of course this can be a new pressure for the yen to continue to weaken against the US dollar. However, if the results of the Japanese industrial production showed an increase, it is an opportunity for the yen to reduce the losses suffered at this time.
Technically, today’s trading session on Friday (12/12), 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 121.15 and 123.50 maximum. Meanwhile, if the Yen was able to break and stays below 119.04, the other alternative scenario that Yen likely to test support in 118.10 and 116.00 area.
LLG Gold Prices Still Going Strong US Retail Sales Positive
LLG gold price at the close of trading on Thursday monitored covered with strengthened early this morning. Strengthening LLG on the closing price of gold early this morning triggered by the encouragement of positive sentiment Fed officials Monday statement Tuesday.
The impact of the release of Dennis Lockhart statement on Tuesday observed still tend to give impetus to the strengthening of the gold price. Dennis Lockhart statement which describes itself in no hurry to make improvements to US interest rates, provide sufficient explanation related to the maze of time fixing an increase in US interest rates. As the existence of such a boost, boost to the gold price movement is strong enough to withstand the strengthening of gold prices closed higher LLG for Thursday.
However, the movement of the price of gold rose relatively limited on Thursday and due to a series of positive data the US economy. Starting from the data US initial jobless claims were better than the level of 297,000 to 294,000, the US economy increasingly positive indication after the release of retail sales data showed an increase of 4.5% to 5.1% and exceeded expectations at 5.1%. Increasing the value of the US dollar after a barrage of data, enough to give a negative sentiment on gold but have not been able to push gold prices closed lower LLG.
At the close of trading on Thursday early this morning, the gold price closed at LLG observed thin strengthened. LLG gold price at the close of trading early this morning closed up 0.14% to the price level of $ 1,228.05 / t oz or rose $ 1.75 / t oz.
While at the close of trading on the Comex gold futures, gold prices actually closed with weakened. Comex gold futures for February 2015 contract closed down 0.31% to the price level of $ 1225.6 / t oz or down $ 3.8 / t oz.
Analyst predicts the price of gold will tend to weaken in today’s trading. It is based on the expectation of positive data on US consumer sentiment. Related to price movements, predicted gold prices would tend to weaken to try to penetrate the $ 1,215.75 level with advanced potential to $ 1,207.65. Conversely, if there was a strengthening, the price will try to break through the level of $ 1,238 with further potential to $ 1,250.
Technically, gold in today’s trading session on Friday (12/12) 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 1220.10 and re-test the maximum level of 1215.50. However, if the price of gold is able to break and hold above 1224.40, the estimated price of gold could potentially test the 1226.50 and 1230.10 resistance.
