The Nikkei Rally in Early Week
Stock markets in Tokyo to follow the movement of the equities in the US are higher at the beginning of the week, rising for the first time in four days amid investors mulled a report showing Japan’s economy shrank in the fourth quarter and signs stock index has been oversold after posting a weekly decline the worst since 2008.
The Nikkei Stock Average rose 3.9% to 15,547.28 as the yen weakened for a second day against the US dollar. US equity markets rebounded on Friday to halt the longest streak of losses since September. China’s stock markets reopened on Monday after a long holiday immersion global stock markets fell into bear market.
An economic report on Monday showed that the economy shrank by 1.4% in the fourth quarter at an annual rate, higher than economists forecast to a contraction of 0.8%.
The yen closed for the biggest rally in two weeks since 1998 on Friday, with increasing speculation that the Bank of Japan might intervene to stem gains that had been threatening for the last three years almost to the monetary stimulus.
The central bank of Japan to the European lapsed that additional easing is ready struggled to assuage investor concerns about global growth.
Technically,
Resistance: 15600 15660 15 840 High / Low: 15635/15475
Support: 15480 15400 15310 Running Price: 15 525
Comment: For intraday trade today suggest Buy at the level of 15450 stop loss at the level of 15710 the target at the level of 15400.
Yen Dim
Yen in Asian trade on Monday (15/2) appear weakened despite being thin.
USDJPY rose 0.155 at 113.40 a troy ounce level. Greenback began to recover from the level of attenuation in 2 months against the Yen. Despite the comments of the President of Governors of the Federal Reserve Jannet Yellen dovish, but be careful of rhetoric in the last week.
The market is concerned that the BoJ will intervene, adding support in the last week. US markets were closed for the President to make a market not too bouncy in today’s trading.
Technically,
Resistance: 113.50 113.80 114.30 High / Low: 113.70 / 113.32
Support: Running 112.00 112.60 113.00 Price: 113.36
Comment: For intraday trade today suggest Sell at the level of 113.50 stop loss at the level of 113.75 the target at the level of 112.55.
Gold Price Depressed Profit Taking
Gold prices fell at the close of trading last week under pressure of profit-taking after surging 5 percent the day before which is the biggest rally in more than seven years. But the weekly posted positive results as the best week in four years due to the shift of investors to gold investment as a safe haven asset amid fears of weakening stock markets and global economic turmoil.
Spot gold prices fell 0.67 percent at $ 1,238.19 per ounce. But on a weekly basis has increased 5.5 percent, on track to rise in the fourth week in a row, and this is the biggest weekly gain since October 2011. On Thursday, gold prices surged 5.3 percent to a one-year high at $ 1,260.60.
While the price of US gold futures for April delivery was down 0.7 percent at $ 1,239.40 per ounce, but are on track to rise 7.1 percent this week, a sharp rise since December 2008.
Investors said the outlook for the gold price rally sustained better over the years.
“Gold could test $ 1,260 or even $ 1,300 in the next few weeks, but I would not be surprised if we also see some profit taking,” said Commerzbank analyst Carsten Fritsch.
US and European stocks rebounded, with US retail sales data boosting sentiment were positive, while the US dollar also rose, pressuring gold prices.
Gold prices have also been boosted by the return expectations for US interest rate hikes and even a possible reduction in interest rates if economic conditions worsen.
On Friday, New York Fed President William Dudley said it was “too early” to even talk about using negative interest rates to boost the economy.
While on the other precious metals, silver prices fell 0.2 percent at $ 15.71 per ounce, slipping from a three-month rise at $ 15.95 on Thursday. Platinum prices dipped 0.3 percent to $ 953.50 an ounce after reaching the highest since November, Thursday. Palladium was up 0.3 percent at $ 522.80 per ounce.
On Monday, the US market holiday commemorating President’s Day.
Technically,
Resistance: 1229.50 1231.80 1234.80 High / Low: 1235.50 / 1226.30
Support: 1225.00 1221.40 1219.10 Running Price: 1227.40
Comment: For intraday trade today suggest Sell at the level of 1230.90 stop loss at the level of 1233.40 the target at the level of 1220.90.
