Japanese Stocks Distressed On BOJ Policy
At the end of trading yesterday the Japanese stock market, the Nikkei index continue weakening, closed down -116.68 points, or -0.68 percent, at 17,117.07. A weaker Nikkei triggered BOJ decision result that secures the continued stimulus and keep interest rates fixed.
Bank of Japan still hold further monetary stimulus by policymakers still measure the impact of negative interest rate strategy they had adopted in January.
Bank of Japan kept their benchmark rate at minus 0.1 percent, the BOJ said in a release on Tuesday (15/03). The decision was predicted by 35 of 40 economists surveyed by Bloomberg. The central bank reiterated that it will add easing if necessary.
Bank of Japan yesterday reaffirmed their stance that they could consider lowering rates further if needed. Banks also proposes to adjust policies to ease the burden of a negative value in some banks, and said it would monitor the impact of monetary policy to be issued by the US Federal Reserve on the financial markets.
Governor Haruhiko Kuroda is scheduled to speak yesterday at a press conference, which can offer the investor will guide monetary policy decision next.
Japanese Stock Market has declined slightly since the negative interest rates was adopted on 29 January
In currency markets, the Japanese yen strengthened against the dollar, following monetary policy decisions the Bank of Japan (BOJ). Pair dollar / yen traded lower by 0.34 percent at 113.42 per time 01:44 HK / SIN.
Shares of Japanese exporters closed mostly lower, with Toyota shares and shares fell respectively 1.82 percent and 1.71 percent, while electronics maker Canon shares closed up 0.21 percent. The strengthening yen is usually a negative for exporters because it reduces their overseas profits when converted into local currency.
As for the Nikkei index futures tracked down -40 points or -0.24% at 16.920, down from the previous trading at 16.960.
Technically,
Resistance: 17000 17060 17130 High / Low: 16940/16820
Support: 16860 16740 16650 Running Price: 16 930
Comment: For intraday trade today suggest Sell at the level of 16970 and stop loss at the level of 17025 and targets at the level of 16710.
USD/JPY Weighed By US Data & Decisions
The US dollar fell about 1% against the yen on the day yesterday as US retail sales data reinforced the weak demand for the safe haven in the middle of the fall in oil prices and global stock markets. The yen also benefited by the decision of the Bank of Japan kept interest rates unchanged.
Six weeks after surprising markets by lowering interest rates to negative levels, BoJ Governor Haruhiko Kuroda said it would take time to see the impact of cuts that although not close the opportunity to re-act before the policy goes completely into the economy.
While the reported US retail sales fell less than expectations in February, but the sharp downward revisions to sales data for January has reignited concerns about the outlook for economic growth.
Technically,
Resistance: 113.50 113.90 114.40 High / Low: 113.31 / 113.00
Support: 111.80 112.50 113.00 Running Price: 113.29
Comment: For intraday trade today suggest Buy at the level of 112.50 and stop loss at the level of 112.25 and target at the level of 114.00.
Gold Back Down On Profit-Taking
Gold prices ended the US trading session with solid decline in the previous day and closed to the lowest level this month.
More profit-taking pressure from recent gains seen. Bearish outside markets earlier this week, oil prices were low and the US dollar index rose, became one of the obstacles bullish for the precious metals.
The recent decline is still not change the posture of the gold, but bullish began to fade and the need for a new driving instructions.
Traders and investors are now waiting for what could be said to be the most important points for the week and month: FOMC meeting which starts on the day yesterday and ended on Wednesday with a statement and press conference from Fed chief Janet Yellen.
No change in US monetary policy is expected at this meeting, but as usual, traders and investors will watch the FOMC statement and Yellen’s comments for clues about Fed policy measures within a few weeks or months to come. The market believes there is about a 50-50 chance the Fed will raise interest rates in June.
No US economic data released on the previous day, including retail sales, consumer price index and the manufacturing and trade inventories. However, these data have only a small impact on the precious metals market.
Technically,
Resistance: 1235.10 1238.60 1241.60 High / Low: 1234.80 / 1231.10
Support: 1231.70 1229.00 1227.10 Running Price: 1233.10
Comment: For intraday trade today suggest Buy at the level of 1230.10 and stop loss at the level of 1228.00 and target at the level of 1240.10.
