Nikkei Tuned BoJ
Nikkei up, still supported by a weaker yen that makes investors remain optimistic about the outlook for Japanese exporters’ earnings. USD / JPY touching 119.06 in early Asian session; one month away from the strongest level achieved 115.55 last Tuesday. If the weakening of the yen continues then this can help improve the competitiveness of Japanese exporters. Nikkei futures rose 1.39% and is now trading at 17515.
However, investors appear reluctant to push up the index are too far ahead of the publication of the results of the monetary policy of the Bank of Japan today. Predicted BoJ will not change its monetary policy, but investors want to look for clues as to whether the central bank is considering granting an additional stimulus to the Japanese economy has slumped into recession and the return of the threat of deflation after the fall in world oil prices.
From the corporate sector, Sony shares fell 0.6% after the release of a report that North Korea is the mastermind behind the cyber attacks against business unit of Sony Pictures. Shares of energy companies will still be in focus after world oil prices failed to continue the momentum of high and low levels back closer to 5 years.
Technically, the index on the trading session today, Friday (19/12) 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 rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 17470 and 17400. If it fails in 17520, we then estimated the index tends to retest the resistance level of 17550 and continued until the possibility of being in the 17600 area.
Hold Euro on Speculation ECB Level Low
The euro was around 0.2% of the lowest level in more than two years against the dollar on speculation the European Central Bank will increase in line with the Federal Reserve’s stimulus policies to move towards higher interest rates.
The euro headed for a weekly decline against most major currencies ahead of taking a German data is expected to show inflation slowed manufacturer. Dollar spot index is close to the high level of 5 years. The Swiss franc fell most sharply in 18 months against the euro yesterday after the Swiss National Bank introduced a negative interest rate.
“The ECB is likely to take a new step in the first quarter and it will hit the European bond yields down,” said Naohiro Nomoto, currency trading partners at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “The euro appears to be the only one who responds to speculation there will be something in the beginning of the year.”
Technically, the trading session today, Thursday (19/12), the pair Euro-dollar likely to move in the negative trend.
The weakening of the Euro mainly expected soon reexamine the minimum support at 1.2250 and 1.2200 maximum. Meanwhile, if the Euro is able to break and hold above 1.2283, then the other alternative scenario that Euro chance to test resistance in 1.2300 and 1.2350 area.
Gold and Silver Rally Over BOJ Policy Report
Commodity exchanges trading precious metals on Friday (19/12), the price of gold and silver has been trading higher ahead of the release of the Bank of Japan’s policy statement.
Ongoing trade in the Asian session, gold futures for February delivery was trading higher 0:35% at $ 1.199.00 per troy ounce on the Comex division of the New York Mercantile Exchange. Since this morning trade, the price of gold looks touched a $ 1.195.90 to session lows at $ 1.199.40 daily and daily highs for the session.
In silver futures for March delivery traded higher also monitored 0:14% to $ 15,957 per troy ounce, the observed hit a session low $ 15,860 to $ 15,977 daily and the level of daily highs for the session.
The increase experienced by the price of gold and silver have occurred when the weakening of manufacturing activity in the Philadelphia area. Based on the official report released by the Federal Reserve stated that the Philadelphia area manufacturing index has decreased, the seasonally adjusted 24.5.
However, the pressure on weaker metal prices also occurred in the previous session when the improvement in the US labor market which is based on the official report released by the US Labor Department showed that the number of jobless claims in the US has experienced a decline, seasonally adjusted 289.000.
Meanwhile, in today’s market will be faced with a policy statement from the Bank of Japan. In line with the results of the Bank of Japan report that, if the statements of the Bank of Japan is “hawkish” then this is an opportunity for gold to rise mempersolid by moving upwards, whereas if the revelation of the Bank of Japan is “dovish” this is a threat for the price of gold to back the natural attenuation.
Technically, gold in today’s trading session on Friday (19/12) 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 1195.10 and re-test the maximum level of 1190.73. However, if the price of gold is able to break and hold above 1198.10, the estimated price of gold could potentially test the 1200.40 and 1205.72 resistance.
