Nikkei Close Higher
At the end of trading yesterday the Japanese stock market, the Nikkei index ended positively, closed up 346.93 points, or 1.98 percent, at 17,865.23. Strengthening the Nikkei index continued with the implementation of negative interest rate policy by the BOJ.
Bank of Japan Governor Haruhiko Kuroda did surprise move on Friday investors, adopting a strategy of negative interest rates to encourage banks to lend in the face of a weakening economy. This surprise is also expected as a step BOJ to weaken the yen and raise the price of imported goods and increase inflation.
Negative rate policy applicable February 16 and will run in a three-tier system of checking the financial institutions’, similar to the program in some European central banks, the BOJ said.
Analyst estimates that the movement in the Nikkei index will likely strengthen further limited, the BOJ policy which weaken the Yen. Technically Nikkei index will move within the range of 17.264 to 16.771 Support and Resistance range from 18.286 to 18.779.
Technically,
Resistance: 17870 17950 18150 High / Low: 17815/17655
Support: 17750 17680 17 590 Running Price: 17800
Comment: To intraday trade today suggest Buy 17700 at the level of the stop and reversal when a break below 17650 level targets at the level of 18010 and 17410 at level reversal targets.
Pounds Up Gains
Pounds difficulty gaining momentum strengthening of manufacturing sentiment report solid in the day yesterday, as concerns about the high public support for the potential release of the UK from the European Union even weigh on the performance of the currency.
Pounds has been depressed since December amid the crux of the BoE rate hike expectations and debate Brexit – British Exit at this year risk triggering capital outflows or at least stop the flow of foreign capital.
Latest YouGov poll on Sunday showed the highest support for the campaign last year of supporters Brexit. While the sentiment index report showed UK manufacturing PMI enjoy bright prospects in the beginning of the year, although some companies cut workers at the fastest pace in the last 3 years accompanied by a decrease in the rate of exports.
M4 money supply data on Monday also showed net selling in UK government bonds by foreign investors during the month of December, after briefly showed record purchases during the months of October and November. Britain is now experiencing a substantial current account deficit and capital inflows to finance the public debt now swells during the 2008 financial crisis.
Technically,
Resistance: 1.4470 1.4520 1.4560 High / Low: 1.4427 / 1.4418
Support: 1.4400 1.4350 1.4300 Running Price: 1.4425
Comment: To intraday trade today suggest Buy at the level of 1.4400 1.4364 stop loss at the level of the target at the level of 1.4498.
Gold Prices Still Rise
Gold futures are still in the volatility of the increase in 3 weeks straight ahead of ISM manufacturing.
Division of the New York Mercantile Exchange, spot gold for February delivery rose $ 4.60, or 0.41%, at $ 1,122.00 a troy ounce. In the last week, the Commerce Department said the US economy grew by an annual 0.7% in the fourth quarter, slowing from 2.0% in the previous quarter.
Investors focused ahead of the ISM manufacturing activity report in order to measure the world economy is strong enough to withstand further interest rate increases this year. Previous data, US consumer spending looks flat in December, although revenue rose 0.3%. Instead consumers save more. While the savings rate rose to 5.5% from 5.3%, as released by the Department of Commerce.
Meanwhile, the inflation rate remained low. PCE index was down 0.1% in December. However, inflationary pressures appeared to rise from December 2014 to December 2015. The market participants were anticipating a rate hike this year to rise gradually.
Precious metal prices ended in January with a gain of 5.4%, it is the largest increase in a year, Gold is often considered as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
On the other Comex trading, spot silver futures fell -0.06% to $ 14,245 troy ounce. While copper down -1.32% to $ 2,039 a troy pound.
Technically,
Resistance: 1130.10 1133.60 1137.40 High / Low: 1130.00 / 1127.50
Support: 1126.70 1124.00 1122.10 Running Price: 1128.80
Comment: To intraday trade today suggest Buy at level 1126.50 1124.00 stop loss at the level of the target at the level of 1136.50.
